The Story
How China is playing Trump
Apr 10, 2025
Rana Mitter, the S.T. Lee Chair in U.S.-Asia Relations at Harvard Kennedy School and a specialist on modern China, dives into the intense trade war between the U.S. and China. He analyzes the implications of skyrocketing tariffs and their historical context. Mitter discusses China's economic dilemmas, including rising youth unemployment and its property market struggles. The conversation also touches on how this trade conflict could influence the future of iPhone production and examines China's potential strategies to leverage economic pressure on the U.S.
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Quick takeaways
- The escalating trade war between the U.S. and China reflects deep-rooted historical grievances, particularly China's narrative of national humiliation and resilience.
- China's economic challenges, including high youth unemployment and property market downturn, complicate its response to U.S. tariffs and global pressures.
Deep dives
The Impact of U.S. Tariffs on China
The U.S. has implemented sweeping tariffs on Chinese imports, with rates soaring to as high as 125%. This aggressive approach has provoked China, which has retaliated by imposing its own tariffs, leading to escalated trade tensions. The tariffs primarily target major industries, threatening China's economic stability and prompting the need for a strategic response. Despite showcasing strong rhetoric, Chinese officials are navigating a complex landscape of uncertainty and confusion regarding the U.S.'s unpredictable actions.
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