A Trade War That Cannot Be Won

The trade relationship between the United States and China is a cornerstone of the global economy and a linchpin of the economic, social and political order in both countries. But in recent years, and particularly during the runup to the 2016 U.S. presidential election, the partnership has come under fire in the United States. Leaders such as President-elect Donald Trump have criticized Washington's trade ties with Beijing as unfavorable, since China's exports to the United States exceed its imports from it. Trump has decried the negative effects of this trade imbalance and promised to correct it, for instance by imposing a 45 percent tariff on Chinese imports. Despite the backlash that such a drastic measure would invite from Beijing, Trump argues that the United States is better poised to weather a prolonged trade dispute than China is thanks to their lopsided trade relationship. A closer look at U.S. trade activities...