Why tariff war threatens Beijing’s global economic ambitions
China’s intensified tariff war with the Trump administration is threatening Beijing’s ambition to transform itself into the dominant player in global technology.
The United States is a vital customer and source of technology for Chinese makers of electronics, medical equipment and other high-tech exports — industries that the ruling Communist Party sees as the heart of its economic future.
Yet, to the Trump administration, they’re a threat to America’s industrial leadership.
Beijing managed to keep Chinese economic growth steady in the most recent quarter despite a drop in exports to the United States. It did so by boosting government spending and bank lending. But China’s technology exporters suffered huge sales drops of up to 40 per cent, which ate into profits that pay for technology research.