Dialogue with Yukon Huang: US-China Trade War and Implications for Europe
US-China trade tensions have shaken global markets. While there is always the possibility of a “truce” being forged, a real solution emerging is unlikely to emerge in the near-term. The challenge in dealing with the US-China trade war is that Washington’s negotiations have been driven by three different constituents with conflicting objectives (White House, business community and the security establishment) while Beijing is preoccupied with its efforts to become a major technological power. A common theme underlying is the clash between two fundamentally different systems, whether it be at the global or country level. Europe’s deep economic linkages with China means that it is being affected negatively. But less well recognized is that that solution to the increasing global tensions may lie in Europe, since left by themselves the US and China appear unable to resolve their differences.