Trade Wars Starting to Impact China, Says Professor Brown

The transcript discusses the escalating trade war between the US and China, focusing on the pressures faced by both countries. It highlights the strategic moves by President Trump and the domestic challenges faced by Xi Jinping. The potential economic impacts of tariffs and the importance of a reciprocal relationship are explored. The discussion also delves into the patience of the Chinese leadership and the concerns of the Chinese middle class amidst economic uncertainties.

What is one of the main reasons China is under pressure in the trade war with the US?

• The trade war is impacting the Chinese economy.

• The US has reduced tariffs on Chinese goods.

• China's economy is booming.

• China has a trade surplus with Europe.

What action might the US take if the meeting with President Xi does not go well?

• Sign a new trade agreement with China.

• Reduce tariffs on all Chinese goods.

• Increase tariffs on car makers except Canada and Mexico.

• Remove all existing tariffs.

Why does the US feel emboldened to continue with its trade actions against China?

• The US economy is in recession.

• The US has no trade deficit.

• There is strong domestic support for the actions.

• China has agreed to all US demands.

What is a significant factor affecting the patience of the Chinese middle class?

• Increased government subsidies.

• Falling unemployment rates.

• Economic downturn and falling house prices.

• Rising house prices.

How does Xi Jinping's political security appear in the current trade war context?

• More secure than ever.

• Completely secure with no challenges.

• Unchanged from six months ago.

• Less secure due to American pushback.