CHINA-US: A CHINESE SCHOLAR'S ASSESSMENT

In a recent (October 18) interview with FT, the Dean of the Institute of International Strategy, Peking University Wang Jisi commented that 'the trade war is an omen and a manifestation of the deterioration of Sino-US relations. It is not the cause. The Trump administration’s trade war is a tactic for mobilising public support along a desire to make certain demands to further US interests. However continuing with the trade war serves the interests of neither country. It will solve nothing. As to which country could hold out better during a trade war, that is a strategic game between the two governments and an economic calculation of corporate interests. In the end, the government must calculate the gains and losses of their various interests and then rationally reach some compromises in order to stabilise the relationship. We need to cut our losses and to prevent trade wars or local disagreements from expanding into other areas that might lead to an overall direct confrontation between China and the United States. Once emotions have won out over reason, there is the danger of a direct confrontation. That is something we need to be psychologically prepared for.





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