U.S. China Economic Relations Are Good Because Trump Is Playing Nice With China

When Donald Trump was flying around the country giving speeches to promote his candidacy for president, he was quick to call China a currency manipulator. And he didn’t mince words when he said he would impose sanctions on China. Both of those brash statements are just thunder at this point and there’s no sanction rain in sight.

The Chinese president is getting a lot of compliments from Mr. Trump. Plus, Trump’s Commerce Secretary, Wilbur Ross, and his Treasury Secretary, Steven Mnuchin, recently met with Chinese officials and it was a cordial meeting. Some Washington insiders say Trump is trying to play nice so China can keep North Korea under control.

But the shaky bromance between the U.S. and China is slowly deteriorating. China won’t or can’t keep North Korea from making threats. Plus, the reopening of beef exports to China is not enough to balance the trade deficit with China. The trade deficit keeps getting larger on Trump’s watch. China exports $360 billion more good to the U.S. than the U.S. exports to China.

The friction between the two largest economies on the planet is increasing every day. The South China Sea, as well as the trade deficit, and the North Korean issue will force Trump to get into true Trump mode before 2017 ends, according to some state officials. But the Chinese know it is only a matter of time before Trump tries to balance trade. He also wants to stop China from manipulating their currency in order to make Chinese products less expensive on the world market.

The Chinese economy is growing twice as fast as the U.S. economy, and if Trump puts sanctions on Chinese imports, consumers will pay the price, and U.S. economic output will suffer, according to some economist. Most economists think Trump will make a move against China after the Russian debacle goes away, and he gets his healthcare agenda and his budget on the right track.

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