Question

What are the Challenges for International Decision makers regarding the U.S and Chinese Trade wars

And what Recommendations should International decision Makers recommend?  

Answer 1

A comprehensible explanation for that is that Uncle Sam might be the lone economic bright spot left as a result of the world’s

economic quagmire. While China has been booming in recent years, its growth is slowing down too. Trump could use tariffs as

a diplomatic cudgel to bring China and other trading partners back to the negotiating table, convince them to draw down their

vast reserves of U.S. dollars, and thereby rebalance international exchange rates temporarily by March. But there is little he

can do to fundamentally erase the trade deficit within such a short period of time, not only because it would require cutting to

the heart of China’s economic model, but also owing to an uncontrollable status quo in the systemic environment.

Second, as opposed to progress in trade, the risk of technological confrontation between the United States and China is

starting to come together. The arrest of Meng Wanzhou, the chief financial officer of Chinese tech giant Huawei, is a solid

example. It has Chinese officials questioning whether the United States is negotiating in good faith, which might potentially

result in a widened rift. A report from Danske Bank, the largest bank in Denmark, argues that there is “improvement in trade

war, deterioration in tech war.” While both sides are keen on progress on the trade front, the Sino-U.S. relationship is

embarking upon a new level when it comes to the ‘tech war’ and cybersecurity. While Huawei exemplifies the successes of

Chinese globalization, its technological advance with artificial intelligence (AI) and 5G does terrify the West, which worries

about China’s political ambition and the practice behind it. In fact, the West, especially the United States, is supposed to

balance fretfulness about security with confidence that global trade plays a constructive role for our prosperity and peaceful

relations.