US vs China: Who’s Afraid of The Trade War?

Donald Trump has never been conciliatory when it comes to US and China relations. Ever since he was a presidential candidate, his rhetoric on the matter has been confrontational. His fears are not unsubstantiated. China rose from a distant fifth position in the world’s GDP ranking in 2005 to a comfortable no. 2 in 2018, almost three times as big as the country in third place, averaging more than 9% yearly growth. America’s reign as the sole global power since the USSR’s dissolution in 1991 was officially over. Shortly after taking the helm as US president, Mr. Trump backed up his words with actual sanctions, from naming China a “currency manipulator” to imposing tariffs on imports from the Chinese, who fought back with tariffs of their own. Including on artworks. The art market is yet another interest group affected by this dispute. How did we get to this point? Basic Economics; Advanced Politics Basic economics states that a country should not depend on imports more than exports. According to the theory, each country should focus on what it produces best and trade those products. Trade deficits are bad for GDP growth, but how to fight them is a more complex question. Imposing any kind of impediment to free trade generates a “dead weight”, damaging both the countries…