Late Night Live - Separate stories podcast
China and US trade breakthrough
May 12, 2025
Zongyuan Zoe Liu, an economist and senior fellow specializing in the Chinese economy at the Council on Foreign Relations, discusses a surprising trade agreement between the U.S. and China. She highlights the strategic negotiations that led to a temporary rollback on tariffs. Liu explores China's shift towards domestic consumption to mitigate international pressures and its diversification of trade relations. She also critiques the 'wolf warrior' diplomacy style and examines the impact of these dynamics on future agreements and U.S.-China relations.
19:29
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Quick takeaways
- The United States and China have agreed to roll back tariffs for 90 days to alleviate supply chain concerns and avoid economic downturns.
- China has strengthened its political authority and prepared for trade challenges by diversifying relationships and focusing on self-sufficiency amid U.S. pressures.
Deep dives
Limited Ceasefire in Trade Relations
The United States and China entered a 90-day period to substantially reduce tariffs imposed on each other's goods, marking a significant step back in their trade war. This decision emerged from practical concerns in the U.S., including fears of supply chain shortages and a potential economic downturn reminiscent of the COVID-19 pandemic. The U.S. has recognized the need for resilience in its supply chain management, leading to a call for stockpiling essential industrial inputs. Without this de-escalation, American consumers and industries could face severe shortages, prompting the agreement as a temporary relief for both nations.
