In this Nov. 9, 2017, photo, U.S. President Donald Trump, left, sits next to Chinese President Xi Jinping during an event at the Great Hall of the People in Beijing. Trump is escalating his trade war against China, but China is not giving in to pressure. | Andy Wong / AP
“Trade is a zero-sum game.” “There can only be one winner and one loser, and the United States is losing.” That’s the message Donald Trump has been hammering since before he even came into office. The biggest villain in his nationalist nightmares, beating and cheating the U.S. in the cutthroat game of global economics? China, of course.
The narrative used to justify his escalating tariff war goes something like this: The trade deficit is out of control because China plays dirty. It keeps U.S. products out of its domestic market, undervalues its currency in order to sell things cheaper, subsidizes its state-owned companies, and steals “our” technology to improve its own products.