, Columnist
Xi Has Squandered His Most Powerful Trade War Weapon
The Chinese president’s failure to build a robust consumer class gives him fewer choices in a rematch with Trump.
A valuable asset.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
The tables have turned. As US President Donald Trump reignites his trade war with China, he’s got all the bargaining chips.
The growth trajectories of the world’s two-biggest economies have diverged sharply since Trump’s first term. While global investors are doubling down on US exceptionalism, keeping faith that the dollar and American equities will continue to outperform, the Chinese economy is limping along and might not able to shake off deflation, perhaps for decades to come.