2017-03-21 09:37:00 Tue ET
technology antitrust competition bilateral trade free trade fair trade trade agreement trade surplus trade deficit multilateralism neoliberalism world trade organization regulation public utility current account compliance
Trump and Xi meet in the most important summit on earth this year.
Trump has promised to retaliate against China's currency misalignment, steel trade practice, manipulative ownership of U.S. government bonds, and passive attitude toward the deterrence of North Korean nuclear threats, whereas, Xi serves as a pacifist to Trump's allegation of currency manipulation as the main reason for American $500 billion trade deficit.
The Trump stock market rally reveals that much economic policy uncertainty revolves around whether the Republican administration would impose a new punitive 45% tariff on Chinese imports to counteract the current trade imbalance between the world's most powerful economies.
Many political considerations such as the One-China policy and the anti-nuclear deterrence of North Korea come into play and affect the U.S.-China economic status quo.
Can the Trump administration's economic sanctions manifest in the form of punitive tariff and trade protectionism as quid pro quo for political concessions on the One-China policy and East Asian nuclear non-proliferation?
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