One Trade War, Two Playbooks

WHAT IF CHINA and the United States are playing a different game over trade even as they stare each other down over tit-for-tat tariffs?

US President Donald Trump may well be following his well-tried playbook of creating maximum chaos with hardball threats and maximalist demands and then playing matters by ear as he seeks to negotiate the deal he wants.

Trump indeed hints at working on “a massive deal” with China, but China says there are no such negotiations and Trump’s new chief economic advisor, Larry Kudlow, confirms that, telling Bloomberg TV that he hopes there will such discussions in the next couple of months.

China, on the other hand, may just be waiting by the river, knowing that if it waits long enough, as the Sun Tzu playbook has it, the bodies of its enemies will float by.

If, as this Bystander believes, this is all really about control of the technologies that will determine economic prosperity in the future, then the long game is the one to be playing.

Little need to win the trade battle when the goal is to win the economic war.

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Filed under China-U.S., Trade

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