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The US will lose badly in the trade war with China and imperil the world economy if both countries don’t cooperate
- US exports to China are down much more dramatically than China’s exports to the US. China has also sold more Treasury bonds in March, putting pressure on the already large US fiscal deficit
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Why you can trust SCMP
The world is taking leave of its senses and falling down the rabbit hole of a deepening global trade war, economic shocks and political instability. The post-war world order is breaking down, multilateralism is giving way to national self-interest and the political forums for peaceful debate are failing.
It’s time for someone to step forward and show stronger leadership before the world sinks back to where the 2008 financial crisis left off. Right now, the world is in self-harm mode and deeply vulnerable.
When two great superpowers go head to head, there’s normally serious injury felt on both sides. The world generally suffers greatly, too. But this is a trade war that the US will ultimately lose – and probably lose badly at that.
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It’s not just the potential harm to America’s international status but damage that could also leave the US economy seriously exposed as well.
America’s burgeoning trade and fiscal deficits underline deep deficiencies in the US economy, which ironically China can help to bridge. Critically, the US is more at risk than China right now.
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