The United States is one of the few countries that can dictate its own terms while negotiating with China. Besides, the US can even completely break up economic relations with China without taking any risks. Interestingly, the US has no loans in China’s banks and does not depend on China's money in joint projects or on Chinese consumer goods.
Being well aware of its advantage, Washington admits the possibility of a complete break of any economic ties with China. Economists say that if it happens, the US will easily fill the gaps in the market after China's firm and imports are reduced to a minimum. Beijing, on the other hand, will be adversely affected by such a decision as it will pose a great threat to its economic power. Considering this possibility, US President Donald Trump said in an interview that the US is not getting anything from China yet. The country is only losing money, losing hundreds of billions of dollars. Therefore, if China does not fulfill its obligations under the Phase One trade agreement, the US will not hesitate to cut ties with China. The American market for China is crucial in terms of economic benefits. The US market is so vast that it will not collapse without Chinese consumers. Trump understands this economic advantage and uses it as leverage against China. In addition, taking into account the latest events in the countries' relations, Trump is more likely to take a tough stance on China. The US is blaming China for the coronavirus spread, albeit China denies any accusations. Moreover, China is tightening its iron grip on Hong Kong constantly violating its obligations under the Phase One trade deal. Patience is not a strong point of Trump. Beijing has been testing his patience for a long time. One day he will simply explode with anger like a volcano.
Notably, the US-China trade relations improved slightly since the parties signed the Phase One trade agreement in January. Yet, it seems that this fragile peace will soon be over.
