Bloomberg - Chinese and US trade negotiators have lined up an array of agreements for Xi Jinping and Donald Trump to formally unveil this week, but none address the core issues of America’s economic conflict with China. While markets have rallied on news that the latest trade spat between the two nations is easing, analysts caution that the deals now set for them to sign in South Korea ignore foundational problems.
While little fish are being scooped up, some of the big fish are getting away, including national security and Trump’s desire to somehow rebuild America’s industrial base. The Republican president has envisioned a “rebalancing” between the two largest economies—a world in which the US revives its manufacturing sector and China stokes domestic consumption to engineer a dramatic reduction in both US trade deficits and Chinese surpluses.
In reality, President Xi may have other ideas. While US Treasury Secretary Scott Bessent pushes China to light a fire under consumer spending and the White House touts Trump’s Asia trip as a ringing success, China’s latest five-year plan appears to show Trump’s rebalancing dream to be—as far as Beijing is concerned—a fantasy. —Natasha Solo-Lyons and David E. Rovella
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