Article 3RH89 The rust belt is being sold a lie – China has funded US spending

The rust belt is being sold a lie – China has funded US spending

by
Larry Elliott
from on (#3RH89)

The president's bizarre solutions to the US trade deficit threaten to send his country into recession

First it was Europe, Canada and Mexico. Now Donald Trump's focus has switched to the real target for his trade war: China. Wilbur Ross, the US commerce secretary, is in Beijing for talks aimed at reducing America's $30bn-a month-deficit. Exports of Chinese high-tech manufactured goods are top of Ross's list.

Make no mistake: Trump's strategy is a sign of weakness not strength. Countries that resort to protectionism normally do so for one of two reasons: to assist the development process when they are on the way up and to slow the pace of decline when they are in relative decline.

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