Which Factors Will Decide Victory in the Sino–US Trade War?

As the Sino-U.S. trade war escalates, the tariffs imposed by the United States on Chinese imports can be seen as a “red light” on Chinese-produced goods, which will divert procurements and supply chains to other locations.
Which Factors Will Decide Victory in the Sino–US Trade War?
Chinese police officers watch a cargo ship at a port in Qingdao in China's eastern Shandong province on March 8, 2018. AFP/Getty Images
Cheng Xiaonong
Updated:

As the Sino–U.S. trade war escalates, the tariffs imposed by the United States on Chinese imports can be seen as a “red light” on Chinese-produced goods, which will divert procurement and supply chains to other locations. As a portion of U.S. imports stops coming from China, it will cause a shift in the Sinocentric global industrial chain that emerged at the beginning of the century.

On Sept. 18, U.S. President Donald Trump announced that he would implement a $200 billion tariff on China in two phases. China’s Ministry of Commerce immediately announced that it would counter Trump’s move with equal tariffs on Chinese goods. The White House responded to this, saying that once China takes these countermeasures, it would impose tariffs on another $267 billion worth Chinese products.

Cheng Xiaonong
Cheng Xiaonong
Contributor
Dr. Cheng Xiaonong is a scholar of China’s politics and economy based in New Jersey. Cheng was a policy researcher and aide to the former Party leader Zhao Ziyang, when Zhao was premier. He also served as chief editor of the journal Modern China Studies.
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