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Trump Struggles With Xi Over Chinese Exports

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The Trump administration, like its predecessors, has struggled to deal with China’s excess industrial capacity. President Trump and China’s leader, Xi Jinping, are meeting this week in Washington. China continues to export a flood of inexpensive goods to the world, despite the Trump administration’s efforts to overhaul the global trading system with tariffs. But it remains unclear how much pressure Mr. Trump will put on Mr. Xi to curtail China’s strategy of using government subsidies to rev up exports.

China’s exports to the United States have slowed significantly because of Mr. Trump’s tariffs. Trade in goods and services between the countries fell 25 percent last year. But China’s exports to the world have continued to surge, and many economists believe Chinese parts and products are still flowing into the United States through other countries. "The problem is that there isn’t that much that can be done about it," said Jonas Nahm, a professor at the Johns Hopkins School of Advanced International Studies. "The tariffs are treating the symptom but they’re not treating the underlying problem."

Despite global backlash, China is on pace to surpass last year’s record $1.19 trillion trade surplus. For the Trump administration, the concern has been focused on exports of Chinese steel, minerals and cars. Treasury Secretary Scott Bessent has argued that Americans should not be seduced by affordable Chinese products. The Trump administration has threatened to impose global tariffs on China, the European Union, India and other countries, citing "excess capacity and production."