Big Take Who Will Blink First in the US-China Trade War?
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Apr 17, 2025 Bloomberg’s John Liu, the executive editor for Greater China based in Beijing, discusses the high-stakes U.S.-China trade war. He dives into the differing negotiation styles of Trump and Xi, highlighting how personal and national pride shape their strategies. Liu also addresses China's economic resilience and its unexpected pushback against tariffs, suggesting that hardball tactics may falter this time around. The conversation emphasizes the critical need for strategic dialogue to navigate these complex tensions.
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Contrasting Negotiation Styles
- President Trump's unpredictability contrasts with China's preference for structured, prepared negotiations.
- This approach puts China on the back foot in trade talks with the U.S.
China's Economy Masks Weakness
- China's reported 5.4% Q1 GDP growth masks underlying economic weakness.
- Export orders pulled ahead and risks like property and consumer spending crises loom beneath surface.
Pride Fuels Trade Stalemate
- Pride blocks progress as neither Trump nor Xi wants to appear weak in trade talks.
- This mutual pride creates a stalemate despite rising tariffs causing pain on both sides.