(Newswire.net — April 11, 2020) — While much of the mainstream media is preoccupied with moaning about the president’s rhetoric, few people are reporting the truth of the matter behind the ongoing trade war between the United States and China. While harm to American consumers and businesses is highlighted, for instance, next to nothing is being said about the disastrous impact this conflict is having on the Chinese economy. While some American businesses have been squeezed by tariffs, the president’s game plan to confront the Chinese openly in a way that no one else has is ultimately working.
Here’s why President Trump has the upper hand in the trade war against China, and why his critics are wrong to assert he’s going to capitulate soon.
We’re finally hitting back
Perhaps the most important aspect of the ongoing economic conflict between the United States and China is that we’re finally hitting back. While ongoing media coverage and political discussions are centered on the trade war, the truth of the matter is that this is a conflict that encompasses far more than mere trade alone. The Chinese have been bullying smaller economies for years, and recently they’ve made moves to handicap American businesses while giving themselves an unfair advantage. As recent developments illustrate, however, President Trump is still confidently spiting the hopes of those in Beijing while supercharging the American economy.
It was recently announced that the president has finally taken steps to label China a currency manipulator, for instance, something that he’s long mused about doing on Twitter and in press briefings. This escalation of tensions with Beijing is surely to pay off in the long-run, as it will force the Chinese Communist Party to seriously confront how it’s been unfairly tampering with its economy in order to gain an undue advantage over others.
With a new round of tariffs set to hit some $300 billion worth of goods on September 1st, it should be clear to see that the president isn’t going to back down anytime soon. Any why would he? By and large, the president’s supporters are ardently in favor of him taking the fight to China, as most Americans are sick and tired of getting hit and want to strike back for once. While previous leaders were unwilling to state things plainly, the president’s candor when it comes to Chinese manipulation of the economy has earned him the respect of many otherwise politically un-engaged Americans who are now his vocal supporters.
Beijing simply can’t compete
While it’s true that the Chinese have taken steps to mitigate the president’s ability to punish them for their economic wrongdoing, it’s also true that their efforts are largely in vain. American farmers who have been hit by Chinese tariffs and denied access to the lucrative market for portable storage containers there have been supported by the president’s stimulus efforts to keep them afloat, for instance, and aren’t reneging on their leader anytime soon. Beijing simply can’t compete against the economic heft of Washington, D.C., especially when a savvy businessman is behind the wheel of the country and steering it in a brighter direction.
President Trump’s closest economic advisors appear to agree with him on this course of action, too, as figures like Larry Kudlow have publicly commented on how disastrous the ongoing conflict has been to the Chinese economy. They make a strong point; whereas the American economy is dominated by the innovative potential of its entrepreneurs, and is thus flexible to changes, the still-Communist-dominated economy of China isn’t nearly as capable of weathering the blows being exchanged in this ongoing economic feud.
The trade war may not end soon
Nevertheless, we may not see a quick end to the ongoing trade war as Chinese officials likely don’t want to appear weak by capitulating to the president’s demands. Given that President Trump has demonstrated he’s a man of his word and unlikely to back down in the face of a fight, it’s also a sure thing that the United States isn’t going to be conceding in the near-future. While negotiations will doubtlessly continue, investors are nevertheless gearing up for a sustained conflict that may disrupt some more industries before the dust finally settles.
The good news is that the Chinese are no longer openly cheating American businesses and getting away with it, largely thanks to the president’s willingness to take much-needed steps that other administrations ignored. The decision to label China as a currency manipulator, for instance, was long overdue and generated a buzz across the marketplace. Investors everywhere now know that the American economy is being steered by a competent businessman who won’t be fooled in the same fashion that previous, economically-inexperienced leaders were.
President Trump has the upper hand in the trade war, though you may not believe that if all you listen to is the moaning from the mainstream press. The truth of the matter is that the American economy will continue to roar ahead despite this economic conflict, however, and we can entrust the president to negotiate a far better deal with China than previous leaders have been capable of achieving.