November 28, 2018
The meeting between US President Trump and the Chinese leader Xi Jinping on the sidelines of the G20 summit in Argentina did not lead to an end to the Sino-American trade war, but only to a truce between the two super powers. According to the Hong Kong-based economist Alicia García Herrero the truce gives both sides more time to disentangle their economies from each other. What the trade war is really about, she argues, is a battle for hegemony, a kind of economic Cold War. Europe is caught in the middle between its two largest trading partners. Some industrial sectors could benefit from increased trade with China, García Herrero says, but the EU also has to be aware that the Sino-American trade dispute carries huge risks for Europe. Listen to Alicia García Herrero in the new MERICS Experts podcast.