Trump's 'disastrous' trade war: US needs China more than China needs it

America depends on China because of a fundamental weakness in the structure of the US economy - a profound and worrisome lack of domestic saving

Not one to be outdone by any adversary, Donald Trump has upped the ante in a rapidly escalating trade war with China, threatening an additional $100 billion of tariffs on top of the initial round of $50 billion. In doing so, the Trump administration is failing to appreciate a crucial reality: The United States needs China more than China needs the US.

Yes, China is still an export-led economy, and the American consumer is its largest customer. But China’s export share of its gross domestic product has fallen from 37 per cent in 2007 to slightly less than 20 per cent