GORDON G. CHANG
Beijing is now telling the United States that it cannot win a trade war with China.
This contention is breathtakingly bold — and unsupportable. In reality, it is China that cannot prevail.
“Why the U.S. Can’t Win the Trade War With China — and Shouldn’t Try,” argues that the relationship between the renminbi and the dollar means that large trade imbalances in China’s favor will persist.
“At the heart of Sino-American trade tensions is the claim that China’s surging exports are a result of Chinese subsidies,” reads the article published on the Project Syndicate site. “But the driving force behind this glut of cheap goods is a significantly undervalued renminbi, a result of high capital outflows caused by both domestic policies and U.S. restrictions on investment in China.”
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