The U.S.-China trade war is in full heat after President Trump increased tariffs on $200 billion of Chinese goods earlier in May. Beijing has since imposed retaliatory tariffs on U.S. imports, and this week halted all purchasing of American soybeans. In a move sure to further strain the global economy, China is striking directly at the base of Trump's support - the American farmer. Trump has since announced a trade aid package of $16 billion for soybean farmers, although this is likely a long term switch for China, who will now receive the bulk of its soybeans from Brazil.
The fallout from the trade war is likely to have far reaching consequences - companies are now rethinking their dependence on China in the global supply chain, and some even argue that Chinese companies should have limited access to Wall Street.
The trade war took to the television on Thursday, as Trish Regan of Fox Business and Liu Xin of China Global Television Network faced off in an on-air debate over the trade war. At times heated, the first-of-its-kind debate addressed issues such as intellectual property theft and economic hegemony. The debate attracted a lot of attention among Chinese social media users, who are increasingly fanning the flames of nationalism as the trade war escalates.
Prepared by China-US Focus editorial teams in Hong Kong and New York, this weekly newsletter offers you snap shots of latest trends and developments emerging from China every week, while adding a dose of historical perspective.