China Power

U.S.Trade War With China?

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China Power

U.S.Trade War With China?

“The U.S. should not have to compromise its national security to uphold free trade – but following China’s example is not the way to do it.”

A good way to directly or inadvertently start a trade war with China would be to take on the economic development goals expressed in the Five-Year Plan. After all, China's leaders see continued economic growth as the key to their survival. 

Conscious that massive investment in heavy industry is unsustainable, Party planners have focused for years on “innovation.”  In the future, they believe, China must change from manufacturing goods for multinational companies to selling products developed by Chinese companies under Chinese brands.  Thus, China's leaders hope to avoid the “middle income trap” and a prolonged recession that could fatally undermine the legitimacy of the Party.

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