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Why China ‘holds all the aces’ in a full-blown US-China trade war

  • The Trump administration announced on Friday it will impose a 25 percent tariff on up to $50 billion in Chinese goods in an effort to protect U.S. intellectual property and technology.
  • China in retaliation said it will introduce taxation measures of the same scale and strength.
  • The objective is to reduce the size of the U.S.--China trade deficit from an estimated $370 billion to $200 billion by 2020.
  • The administration says these alleged IP appropriations along with corporate espionage have cost the U.S. economy between $225 to $600 billion a year.
  • While this may hurt China in the short-term, it has other markets to sell to in Asia and elsewhere.

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IMF says trade war threatens China’s growth, pushes for an equitable resolution

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