Project Syndicate: Keyu Jin Says More
Project Syndicate catches up with Keyu Jin, an economics professor at the London School of Economics and a World Economic Forum young global leader.
Project Syndicate: US President Donald Trump has touted the new “phase one” trade deal with China – which leaves many of the biggest issues unresolved – as a triumph for the United States, and his supporters seem convinced. How is the deal, which includes the Trump administration’s repeal of its designation of China as a “currency manipulator,” being viewed in China, and what are its implications for the broader bilateral relationship?
Keyu Jin: Getting China to buy more American goods is the easy part. Getting it to strengthen intellectual-property protections and open up its financial sector will help the Chinese economy in the long run. So, despite what Trump believes, the deal is no defeat for China.
In fact, the deal is not much of an achievement for either side, since it fails to address the thorniest issues, such as Chinese industrial subsidies and Trump’s attacks on Huawei, the Chinese telecoms giant. But making Trump feel that he has scored a victory could be a strategic choice, as it could help to ease tensions between the two countries, thereby creating space for them to address tougher issues.
