On the campaign trail, then-candidate Donald Trump railed against China for its massive trade imbalance with the United States. Candidate Trump bluntly blamed China for America’s trade problems. In China, President Trump sang a slightly different tune:
“I don’t blame China. Who can blame a country that is able to take advantage of another country for the benefit of its citizens? I give China great credit.” -President Trump
It seems that on at least some level, the President respects China for its ability to create such a one-sided relationship with the United States. This marks a stark break from Trump’s comments on the campaign trail, where he accused China of “raping” the United States and manipulating its currency.
While the President doesn’t specifically blame China for its unfair trade relationship with the United States, that does not mean that he will accept the status quo going forward. While in China, Trump stated that the United States must “change its policies.” Trump isn’t looking for a fight with China, but has hinted that the current situation cannot persist.
“My feeling toward you is incredibly warm. We have great chemistry. I think we’ll do tremendous things, China and the U.S.” -President Trump
In 2016, the trade deficit between China and the United States totaled nearly $350 billion. The United States exported only about $116 billion worth of goods and materials to China while importing $463.
Trump’s comments do have a sound logic behind them. Why blame China for taking advantage of and making the most of its situation? China will pursue its own self-interest. China is playing the game to win. The United States, arguably, hasn’t done as good of a job pursuing its own national interest.
Chinese President Xi emphasized the “spirit of mutual respect and mutual benefit.”
Rather than blaming China for the trade imbalance, Trump laid fault at the feet of his predecessors. America’s massive trade deficits have grown since the 1990s. In 2000, the United States trade deficit weighed in at “only” about $370 billion. In 2006, the trade deficit topped $750 billion, its highest point ever. Under the Obama administration, the trade deficit regularly hovered around $500 billion.
Chinese President Xi was not as effusive as President Trump. However, Xi hoped for a “new starting point” in relations between the United States and China. Xi also emphasized the “spirit of mutual respect and mutual benefit.” In that spirit, China and the United States signed memorandums of understanding to increase trade by $253 billion.
It should be noted that President Trump frequently outsourced production through the Trump Organization. The organization also frequently imports foreign laborers to work at its hotels and other facilities. President Trump has come under fire for these practices but has generally argued that he was simply taking advantage of the opportunities in front of him.
Trump and Xi To Work Together on North Korea
Outside of the economy, Trump and Xi are also expected to talk amongst themselves at length about North Korea. China has been North Korea’s largest benefactor in recent years, but even President Xi has struggled to rein the rogue state in.
Xi’s inability to control North Korea may be due to internal power struggles within China. Xi has been caught up in a power struggle with Jiang Zemin, the former head of China’s Communist Party. However, last month Xi consolidated power at the Communist Party congress.
