The "trade war" between China and the United States has shifted to an "action-reaction" behavior. United States political leaders argue that the trade deficit with China harms the U.S. economy and is not sustainable. The recent emergence of this dispute contains contradictions. The relative importance of this deficit peaked a decade ago, prior to the financial crisis of 2008/09, and the significance of the U.S. to China's economy and its trade likewise peaked at that time.
China's "Belt & Road" initiative now includes economies that, in aggregate, comprise a total economy that surpasses the United States. Trade of China with "Belt & Road" economies now exceeds that with the United States.
Regional groupings of countries in the "Belt & Road" initiative diverge significantly in relative importance to China. This suggests China's trade relationships with these countries will take on diverse approaches. Southeast Asia emerges as a critical economic region for China's future economic growth and trade, implying that countries of that region will play a major role in the "Belt & Road" initiative. The paradox of the "trade war" between China and the U.S. points to a realignment of the global economy—the U.S. raises the stakes in the "trade war" even as its importance to China is in long-term relative decline.
First 15-20 minutes is for networking
Light breakfast included