US Shifts from Changing China's Economic Model to Managed Trade

The United States is halting its 25-year attempt to change China's economic model and is shifting towards managed trade focused on tariffs and item-specific transactions. Jamieson Greer, the U.S. Trade Representative, noted that efforts to transform China into a consumer-driven economy have failed, emphasizing a policy to lower the existing approach and manage trade between the two countries. On June 2, the U.S.-China Trade Committee was established, setting July 10 as the deadline for submitting opinions to discuss the possibility of adjusting tariffs on non-sensitive items. Greer pointed out that significant reforms are not expected, and the demand for changes in China's economic structure touches on the core of its political system. China is also emphasizing consumption and domestic demand, with the Deputy Minister of Finance stating that more spending will be directed towards households and consumption through additional fiscal policies. Furthermore, reports have emerged that China has made additional purchases of U.S. soybeans. However, some experts warn that China's overproduction issues could lead to a global economic crisis, arguing that managed trade will not solve structural problems. This shift suggests that U.S.-China tensions may become entrenched in a cycle of repeated negotiations rather than one-off confrontations.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.