China is winning the trade war and its exports have never been higher

Meanwhile, China’s trade relationship with the United States has become more dysfunctional: Beijing’s trade surplus with Washington increased to $ 317 billion in 2020, a 7% increase over the previous year and the second-highest amount on record, according to Iris Pang, chief economist. For Greater China in ING. This amount does not exceed $ 7 billion from 2018 levels, when Trump launched a violent trade war to correct what he described as an unbalanced relationship with the second largest economy in the world.

“Judging by the increase in US imports from China in 2020, it seems fair to say that Trump’s trade war with the country has failed,” Kuijs said. He said.

“Such as [China] It plays a critical role in many supply chains and remains a very competitive place to produce, it is much easier to say rather than do to separate it from it. “

But China’s future is not without its challenges. Analysts suggest President-elect Joe Biden will likely not reverse some of the pressure on the country after taking office next week.

Kuijs said: “The Biden government will take a different approach, less combat and more consistent towards China.” But it is not politically possible for Biden to raise tariffs on Chinese goods anytime soon.