Why China Is Gaining the Upper Hand in Trump’s Trade War

The article discusses the ongoing trade war between the United States and China, and how China is gaining the upper hand in this conflict. According to Arthur Kroeber, the head of research at Gavekal Dragonomics, the recent tit-for-tat tariff increases reveal China's growing leverage over the United States. The article suggests that China's ability to respond to U.S. tariffs with its own measures, and its willingness to engage in a prolonged trade dispute, have given it an advantage in the negotiations. Additionally, China's control over its currency and its vast domestic market provide it with tools to withstand the economic pressure from the U.S. The article also notes that the Trump administration's trade policies have had a negative impact on the U.S. economy, with increased costs for American consumers and businesses. This has further weakened the U.S. negotiating position and strengthened China's hand in the ongoing trade war.