Why China can afford to stay cool under Trump's trade war threats - Arthur Kroeber

Arthur Kroeber

China has reacted pretty cool on the increased signals US president Donal Trump is heading for a trade war, says leading economist Arthur Kroeber, author of China's Economy: What Everyone Needs to Know® to the Washington Post. While the traditional conflict-solving procedures at the WTO might not fit the tit-for-tat approach of a trade war, China can afford to keep its composure.

The Washington Post:

Many will now wonder whether the United States is not a greater threat to the world trading system, said Arthur Kroeber, managing director of the Beijing-based research firm Gavekal Dragonomics. 

“China can afford to play it pretty cool and measured, as they have been doing ever since Trump took office,” Kroeber said. “They take a small, really negligible, hit to their steel and aluminum exports, but strategically they come out way ahead by just letting Trump be Trump.”

More at the Washington Post.

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