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Trump's policies failed, and the decoupling with the tariffs didn't work, you see how fast the bond market reacted. China has made new trade deals with other nations and didn't flinch. It walked the talk, and now Trump as usual, is doing a reach around on himself. Instead of grouping together with his allies to work through problems with China, he's distanced them and made things worse.

The US has had years of policy failure; they wanted a free ride from the manufacturing boom in China, and there just isn't one in the end. Decoupling from China is something like a 10~20 year ordeal, otherwise, the world will end up with nasty retaliatory trade attacks. The debt is a US debt, not a Chinese one. The US kept on printing money to cover the debt and it aids in inflation. The Trump Tariffs are a band-aid solution, recession is imminent if they want to fix the debt, otherwise it's back to printing more money.

China itself isn't free of problems, it also has its weaknesses. It has a property crisis, a large aging population, contaminated water and soil from industrialisation and needs to import its energy, water and food. So it's also paid the price for industrialisation and supply cheap products to the US. China is a lot smarter than it once was; they saw the effects of the Plaza Accord on Japan.
 


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