Potential Trade War Brewing With China?

From Uncommon Wisdom:

by Sean Brodrick

I don’t think we’ll see a trade war anytime soon, for the simple reason that the wheels of politics turn slowly (usually). And it may not happen at all — this may be sound and fury to please the plebes in an election year. But these two stories bear watching simply because a trade war would be a game-changer …

China to lose ally against US trade hawks

Myron Brilliant, senior vice-president for international affairs, who has previously helped to protect Beijing from hawkish trade policies, told the Financial Times: “I don’t think the Chinese government can count on the American business community to be able to push back and block action [on Capitol Hill].”
…
Mr Brilliant said corporate America’s attitude had changed in response to a range of “industrial policies” pursued by Beijing, including the undervaluation of the renminbi, which made it harder for US companies to do business and compete with China.

China’s commerce minister: U.S. has the most to lose in a trade war

China’s commerce minister warned the United States on Sunday that if it launches a “trade war” against China by levying punitive tariffs on Chinese imports, the United States will suffer the most.
…
“You’re not going to get 1.3 billion Chinese to change by insulting them,” [Commerce Minister Chen Deming] said. “Could it be related to upcoming elections? I don’t know. Because economically, it makes no sense.”

 Hat-tip Calculated Risk

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