The logic of US-China trade frictions EXCLUSIVE

Interviews 11:41 17.04.2018
Trade disputes between China and the U.S. will not affect the stable development of China’s economy, a spokesman for the National Bureau of Statistics of China, Xing Zhihong told a news conference in Beijing on Tuesday. 
 
Political analyst and commentator Emanuele Scimia explained the logic behind imposing tariff. He stated for Eurasia Diary that politically, there is Trump's intention to accomplish one of his electoral promises - in this case, safeguarding American jobs against China's unfair commercial policies - and consequently revives his political base with a view to the 2020 presidential campaign. 
 
Korrespondent Emanuele Scimia
Emanuele Scimia
Political analyst, commentator
 
As far as the business aspect is concerned, the issue is more complex. The US president wants the country's trade deficit with China to be reduced consistently. 
 
The problem is that the US economy is now centered on the output of software and services, with an evident deficit in the production of innovative hardware, which America is obliged to buy from China and other Asian manufacturers. In trying to fix the trade imbalance with China, Trump's announced tariffs against Chinese products, as heavy as they look, will be useless if the US does not address such a structural problem in its supply chain.
 
Trade frictions and global economy
 
Emanuele Scimia said that Trump's tariffs against China have not entered into force yet, as they are going through an internal review process, and that will take some time. Global markets have so far reacted moderately to the US president's move. Oil prices have surged in reaction to the deterioration of the Syrian crisis these days, and not because of a potential trade war between Washington and Beijing.
 
Despite official denials from Beijing, Chinese President Xi Jinping's overtures to market reforms, rolled out at the recent Boao Forum, could signal China's willingness to negotiate with Washington. Trump basically wants that China to level the playing field for American companies, which are now forced to transfer intellectual property and technology if they want to operate in the Chinese market. 
 
The EU has leveled the same accusations, but it is moving in the framework of the WTO rules. The US president is filling his administration with China hawks, and that does not look promising for future negotiations. But after mid-term elections in November, a Democrat-led Congress in Washington could block Trump's excesses, including those toward China. This is a delicate issue, given that the US and China are interdependent both economically and financially, and Beijing holds nearly 20% of US foreign debt.
 
Expert also mentioned that Trump's approach to foreign policy is transactional. He could be leveraging the trade threat to exact China's concessions on other issues, such as North Korea and its nuclear program - a risky bet that could further complicate the scenario, possibly reducing chances of a mutually acceptable trade accord between the two parties.
 
Farid Hasanov
IEPF issued a statement regarding Azerbaijani children at the UN Human Rights Council

News line

Palestinian man shot dead after stabbing Israeli soldier during West Bank raid
21:20 10.07.2025
Israel has agreed to 'significant steps' to improve humanitarian situation in Gaza: EU foreign policy chief
21:00 10.07.2025
EU aims to mobilize up to $11.7B in investments for Ukraine's reconstruction
20:45 10.07.2025
UNAIDS warns funding collapse could lead to 6M new HIV infections, 4M deaths
20:30 10.07.2025
UN report sounds alarm on climate health risks for world's aging population
20:00 10.07.2025
Merz: Germany fully supports Ukraine's plans to join EU
19:45 10.07.2025
Azerbaijani citizens involved in Wagner armed group arrested - State Security Service conducts operation
19:15 10.07.2025
Luka Modric signs one-year contract with Milan
19:00 10.07.2025
Rubio: US hopes to persuade NATO allies to transfer some Patriot systems to Ukraine
18:45 10.07.2025
Zelenskyy: 200 agreements with total value of over €10B ready to be signed
18:30 10.07.2025
Von der Leyen's EU Commission survives Parliament confidence vote
18:15 10.07.2025
SOCAR becomes jersey sponsor of Turkish First League side
18:00 10.07.2025
Azerbaijan takes leading postion in UN digital trade survey
17:45 10.07.2025
Ex-NBA player Ben McLemore sentenced to over 8 years in prison for rape
17:30 10.07.2025
Russia warns Armenia of sanctions risk
17:15 10.07.2025
COP29 President, COP30 President-designate hold discussions at OPEC seminar
17:00 10.07.2025
Ilham Aliyev's meeting with Nikol Pashinyan was constructive
16:55 10.07.2025
Baku says Azerbaijan, Armenia agreed to continue dialogue in bilateral format
16:45 10.07.2025
Peskov: Baku-Yerevan peace treaty will bring stability to South Caucasus
16:30 10.07.2025
Azerbaijan refunds over 94M manats of VAT to consumers
16:15 10.07.2025
Amnesty International slams US sanctions on UN Rapporteur Francesca Albanese
16:00 10.07.2025
China pushes back 50% US 'security' tariffs on copper imports
15:45 10.07.2025
Top Southeast Asian diplomats hold summit with China’s foreign minister
15:30 10.07.2025
Israeli strikes on Gaza leave 97 Palestinians killed, dozens more injured in past day
15:15 10.07.2025
Messi creates history in MLS, becomes first player to achieve rare feat
15:00 10.07.2025
Heavy rain delays over 300 flights in New Delhi
14:45 10.07.2025
Shamakhi to host conference on Modern Information Space and Freedom of Religious Belief
14:30 10.07.2025
At least 28 killed, dozens injured in pre-dawn Israeli strikes across Gaza Strip
14:15 10.07.2025
Court orders arrest of former South Korean president
14:00 10.07.2025
US nuclear-powered submarine makes first port call in Iceland
13:45 10.07.2025
Israeli soldier killed during attempted Hamas abduction in southern Gaza, IDF says
13:30 10.07.2025
ADY and China Railways reach agreement to increase BTK capacity
13:15 10.07.2025
U.S. measles cases hit highest level in 33 years,
13:00 10.07.2025
Azerbaijan, Saudi Arabia discuss co-op in hydrocarbon sector
12:45 10.07.2025
UK, France to order more Storm Shadow missiles, plan next-generation replacements
12:30 10.07.2025
Houthis kidnapped crew members of Eternity C vessel, US Embassy in Yemen says
12:15 10.07.2025
President Ilham Aliyev addresses participants of ICDO General Assembly session
12:00 10.07.2025
US to impose 50% tariffs on imports from Brazil starting August — Trump
11:45 10.07.2025
US resumes certain arms shipments to Ukraine
11:30 10.07.2025
SOCAR president participates in OPEC International Seminar
11:15 10.07.2025
Hamısı