Why China can't meet Trump's $200 billion trade demand
- Written by Amitrajeet A. Batabyal, Arthur J. Gosnell Professor of Economics, Rochester Institute of Technology
President Donald Trump has demanded China cut its trade deficit with the U.S. by US$200 billion by 2020 or face a host of punishing tariffs. After recent talks with the U.S., China agreed to reduce it but wouldn’t commit to a target.
Regardless, my research in international economics tells me that meeting Trump’s demand is implausible....
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