The essence of Sino-US trade is actually very simple, that is, the two countries have solved each other's fatal problems.
Chinese factories are working hard to produce, but the consumption capacity of ordinary people cannot keep up. Things are piling up more and more, and prices are getting lower and lower. This is called deflation risk. The US printing press is printing money crazily, but domestic goods cannot keep up. There is more and more money, and prices are going to soar. This is called inflation risk.
As a result, these two smart people hit it off: China sold its backlog of cheap goods to the United States, suppressing US prices; the United States gave China the extra dollars it printed, solving the problem of Chinese goods not being able to be sold. In the past two or three decades, this trick has stabilized the economies of both countries.
Now that the trade war has started, the good days are over. Chinese goods cannot enter the United States, and factories have to stop production; the United States cannot buy Chinese goods, and prices cannot be suppressed. So there is a funny scene: the United States is frantically raising interest rates to fight inflation, and China is desperately lowering interest rates to prevent deflation.
To put it bluntly, the partners who originally cooperated tacitly suddenly broke up. Now one is full and blood sugar has soared, and the other is hungry and dizzy, and they are cursing at each other across the Pacific Ocean. This scene is both ridiculous and pathetic, and it is completely self-inflicted.
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