China-phobic US in codependency trap

Seemingly at odds with the world, US President Donald Trump has once again raised the possibility of a trade conflict with China. On Aug 14, he instructed the US Trade Representative to investigate whether China has infringed intellectual property rights. By framing this effort under Section 301 of the United States Trade Act of 1974, the Trump administration could impose high and widespread tariffs on Chinese imports.

This development could have far-reaching consequences. While there may be merit to the allegations, as documented in the latest "USTR Report to Congress on China's WTO Compliance", punitive action would have serious consequences for US businesses and consumers. Like it or not, that is an inevitable result of the deeply entrenched codependent relationship between the world's two largest economies.

But in a trade conflict, it is important to think about reciprocity - specifically, China's response to a US action. In fact, that was precisely the point made by China's Ministry of Commerce in its official response to Trump's gambit. China, the ministry vowed, would "take all appropriate measures to resolutely safeguard its legitimate rights".