The chief economist of the CME Group, an exchange in the US, is now tabling the idea the President Trump would be better off by not signing a deal with China on trade. In a CNBC article by Holly Ellyatt, the ideas from this economist, Blueford Putnam, do make sense. But again, this is not about trade, it is about two super powers – keep reading please.
Trump is under constant pressure from the Democrats who are antagonistic to China so a trade deal with Beijing would bring condemnation from the left and far left. However, there are many conservative Republicans who are hostile toward China and of course they are now pressuring President Trump to hold off and make more demands from China.
The US has accused China of intellectual property theft and China is demanding that the US end all tariffs in the coming months so they can get on with trade talks. In our view, the situation is only going to get worse as China expands its influence and takes its place on the global stage. China and the US will learn to live together as there will be two super powers on the planet. This is a generational change and as the world fragments into regional spheres, the US and China will be rivals.