Contrary to Trump’s comments at the World Economic Forum, a trade war remains unlikely despite the ongoing US-China trade deficit, as criticism of China is part of the campaign narrative and making China a scapegoat for things going wrong is old hat.
In the last few years, China has climbed to the pinnacle of nations of the world in terms of creativity and innovation. Breakthroughs in artificial intelligence and quantum computers are thought to give China a big advantage in its global power and influence.
Canada’s economic exchange with China started in the 1960s with wheat exports to China. Today, 50 percent of Canadian exports to China are based on natural resources and the Canadian government believes that they have more resources to offer.
Observers had expected a major breakthrough on the front of trade during Canadian Prime Minister Justin Trudeau’s trip to China in December 2017. Both countries however simply agreed to continue their “exploratory discussions toward a comprehensive trade agreement.”
As of July 2017, China has allocated more than USD 100 billion to pay for Belt and Road Initiaitve projects, including the massive USD 46 billion China-Pakistan Economic Corridor and a pan-Asian high-speed railway.
India’s upgrading of the Look East Policy to Act East Policy seem promising for India-Vietnam economic ties. With the progression of the Regional Comprehensive Economic Partnership Agreement, there will be more opportunity to tap the Vietnamese market.
Hong Kong serves as a template for China to develop capitalism with Chinese characteristics. Hong Kong has been a living economic laboratory for socialist China to observe and selectively apply capitalist market features that have led to the rise of the Chinese economy.