Wednesday, August 16, 2017
Immense damage of US-China Trade War would deter both sides from starting one
ANBOUND
President Trump has signed the memorandum of understanding to authorize the US Trade Representative conducting trade investigation with the power granted by the Section 301, triggering massive concern from the Chinese side towards a potential trade war. Although the signing of the memorandum itself is not equivalent to an immediate outbreak of the trade war, the process of potential risk becoming a reality has already been half way through. Both China and the US have a substantial economic scale with high degrees of interdependence in trade and service sectors. The immense damages caused by a possible trade war would deter both sides from considering the option of starting one.