Category Archives: Trade War

Why Chaos Is Here To Stay

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Journal of Political Risk, Vol. 7, No. 5, May 2019

A confusing traffic light system with multiple signal heads. Source: Paola Kizette Cimenti via Flickr.

Laurent Chamontin
Consultant, Writer, and Teacher in the Geopolitics Field

The 2010s are characterized by an exceptional amount of political volatility (e.g., Brexit, and Donald Trump’s election). This volatility resulted from an unprecedented level of complexity, whether at the level of individuals, nations, or the world, generating outbursts of populism, loss of long-term orientation, dysfunctional newspeak, and decay of international institutions. To overcome this challenge, democracies must rethink their education policies and promote a redesign of multilateral institutions to better coexist with the nation state.

If the purpose of politics is to provide mankind with the consideration of perspectives for the purpose of organization, then indeed we are experiencing a world-scale political crisis. Any nostalgia for supposedly more stable eras put aside, political volatility has increased to a level unprecedented since the collapse of the Soviet Union. Continue reading →

US-China Trade War: Time is on the Side of the US

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Journal of Political Risk, Vol. 7, No. 5, May 2019

Ho-fung Hung
Johns Hopkins University

The US-China trade war has unfolded for nearly a year now. After some false hope of a quick deal, China’s backpedaling in May from earlier promises to stop requiring a technology transfer from US firms in China, and to do more to protect intellectual property, obliterated such hope. Trump’s reaction of raising new tariffs on Chinese goods, followed by China’s retaliation in kind, led to an escalation.

Bipartisan Support of Trade War with China

This escalation of the trade war, interestingly, has not unleashed criticism of President Trump in the US. Sources from the US negotiation team and those from its Chinese counterparts both verified China’s last-minute withdrawal of earlier commitments. There is little doubt that Beijing rather than Trump is to be blamed for this re-escalation. Trump’s strong response to the Chinese backpedaling instead got rare bipartisan support. Congress Democrats are on the same side with the President, judging by Senate Minority Leader Chuck Schumer tweet, “Hang tough on China, President @realDonaldTrump. Don’t back down. Strength is the only way to win with China.”[1]

Figure 1. China’s External Financial Position. (Source: World Bank)

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