Summary of What have we learned from the trade war with China?

What have we learned from the trade war with China? summary
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In this illuminating podcast, David Dollar, a senior fellow at Brookings, interviews economist Eswar Prasad about developments in and possible outcomes of the US–China trade negotiations. In their insightful dialogue, conducted shortly before the December 2019 announcement of a proposed phase-one deal, the two discuss structural elements of the Chinese economy and their importance in the conflict. Business executives and policy analysts interested in a broad perspective of the state of US–China economic relations will glean valuable information from this concise conversation.

About the Podcast

David Dollar conducts the Dollar and Sense podcast series on economic topics at the Brookings Institution. Eswar Prasad is an economics professor at Cornell University.

 

Summary

US–China trade tensions are inducing changes in China’s economy, but international corporate spending and investment decisions remain disrupted.

As of November 2019, more questions than answers continue to bedevil US–China trade relations. The Trump administration unequivocally believes that China is running circles around the United States in terms of the bilateral US trade deficit. The current tariff discussions, however, also are entangled with bedrock structural issues of “distortions in the Chinese economy” that include foreign access to Chinese markets, “forced technology transfer” and inadequate intellectual property protection.

During 2019, China strengthened its intellectual...


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