The Terminal is Getting Closer - written by 20118 Lee Yu Kyung

The Terminal is Getting Closer

      written by 20118 Lee Yu Kyung

The Hong Kong-based South China Morning Post reported that U.S. President Donald Trump and Chinese President Xi Jinping were likely to hold a summit in Washington in June.

Also on April 24, 2019, President Trump said President Xi Jinping will visit Washington soon, though he did not specify when.

The problem that the two countries have deals with the trade between each other which began after the Trump administration took office in 2017 with protectionism through the withdrawal of TPP (Trans-Pacific Partnership), renegotiation of NAFTA(North American Free Trade Agreement)  and  FTA (Free Trade Agreement).

From 2018 onwards, a full-scale trade war between the United States and China began. China's trade deficit with the U.S. accounted for 47.1 percent of the total. In response, the U.S. has declared that it will root out China's unfair trade practices, including its alleged illegal subsidies, overproduction and currency manipulation.

In the case of China, despite the continued U.S. attacks, it is unlikely to solve structural problems such as intellectual property rights, technology theft and China's legislation to prevent them. This is because Xi Jinping has a political stance and economic problems can be supplemented by measures to boost domestic demand.

However, the Korea Center for International Finance said that the U.S.-China trade war would have more side effects on China than the U.S. China added that if the U.S. imposes 25 percent tariffs on all Chinese imports, China's GDP growth would be lowered from 0.9 percent to 2.15 percent, depending on the forecasting agency.

The reason for this war to end is not only in China but also in the United States. Francis Fukuyama, a professor at Johns Hopkins University, told the Nikkei newspaper that he feared a trade war between the United States and China could lead to a Great Depression. In May, 1,140 U.S. economists, including 15 Nobel laureates in economics, sent open letters to the Trump administration and Congress, warning them not to repeat the 1930s mistakes. The economists attributed the Great Depression of the 1930s to excessive protectionism in the U.S., warning that if the U.S. continues to insist on protectionism, it is likely to lead to an economic recession.