January 19, 2018 | By: HUILENG TAN –
A year after President Donald Trump took office, the United States’ trade deficit with China looms larger than ever.
Although both countries calculate the gap differently, the latest data from Beijing indicates a trade differential at a record high of $275.81 billion in 2017. That figure does not bode well for bilateral relations, which many expect to take a turn for the worse in 2018 after a year of relative inaction from Trump.
“The prevailing view in Washington now is that, this year, he is determined to bite somebody, and China is the most likely target,” William Reinsch, the former president of the National Foreign Trade Council, told CNBC.
Experts in China are also widely expecting trade tensions to ratchet up.
Tu Guangshao, vice chairman and president of China Investment Corporation said he expects “trade friction,” but not a “serious trade war,” between the two major economies.
“The basic premise is that China-U.S. trade is not just benefits China, but in fact benefits the U.S. as well,” Tu told delegates at The Asian Financial Forum on Monday, according to transcriptions of his comments.
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