SHANGHAI, July 10. /TASS/. Washington suffered a defeat in its trade confrontation with Beijing and realized that cutting economic ties with China would not be expedient, Wang Zaibang, a senior research fellow at the Taihe Institute, told TASS.
"After months of his trade war with China, US President Donald Trump was actually defeated," Wang said, commenting on the US leader’s remark at a Cabinet meeting earlier this week. "Amid its trade war, the United States concluded that it would be inexpedient to sever ties with China," the expert said, adding that Trump’s latest rhetoric would create a favorable atmosphere for improving trade relations between the two countries.
According to Wang, Beijing can effectively counter tariff wars, as it can sell goods to other countries and regions if the United States bans imports from China. And it would be difficult for the United States to find an alternative to Chinese imports in the short term. China is still in a favorable position thanks to its rapid growth in high-tech industries, he noted.
"Meanwhile, Beijing tightening control of rare earths exports has put significant pressure on relevant industries in the United States, especially its defense industry," Wang emphasized. "This situation, too, forces them to soften their confrontational stance even more," he concluded.
On July 8, Trump held a Cabinet meeting at the White House as he said that relations between the United States and China have lately improved and that Beijing is pursuing a fairer policy toward Washington in the trade sphere.