As world trade and investment have plateaued, globalization has ground to a halt. The timing could not be worse for the Trump tariffs.
In the recent Central Economic Work Conference, stability became the common denominator for China’s economic planning in 2017. And next year, the new central committee will is likely to speed up the reform push toward the late 2010s.
Meanwhile, President-elect Donald Trump chose Peter Navarro, a long-standing China basher, to head the newly-created National Trade Council. Concurrently, the Trump team proposed a 10% import tariff, which is likely to trigger a trade conflict between US and China – and many other nations.
Starting in January, the US-Chinese goals will diverge in a way that has not been seen since the 1970s.