Preview: In the midst of an ever-escalating tariff war, I do not share the view that Sino-American tensions are all about trade imbalances. The real battle is a strategic clash over innovation and technology — the Holy Grail of any nation’s prosperity. Yes, there is a large and seemingly chronic trade imbalance between the United States and China that is growing even wider today. But this is just as much a function of America’s own macroeconomic problems as a reflection of unfair Chinese trading practices long alleged by the Washington consensus and now underscored by the shrill rhetoric of the Trump Administration.
