Twenty years ago, China was dramatically underdeveloped, and it wanted access to Western technology and manufacturing techniques. Today, China has most of what it needs now, and what it doesn’t have it can easily obtain from vendors outside the U.S. The American market which looked enticing a few decades ago, is relatively mature, and today the newer emerging market countries have become much more interesting to Beijing. Hence, President Donald Trump threat to impose 35% to 45% tariffs on Chinese imports to force China into renegotiating its trade balance with the U.S. may not really impact its ‘One China’ policy. For the moment, China has decided to wait for the U.S. to make the first move. But it would not be a disaster for China, mainly because the U.S. needs China more than vice versa.

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