This episode explores the escalating US-China trade conflict, framed as a potential "war" rather than a mere trade dispute. Against the backdrop of a seemingly positive market reaction to a statement by Treasury Secretary Scott Besant, the hosts and guest delve into the complexities of the situation. More significantly, guest David Woo argues that the conflict is driven by a desire to protect US technological and economic hegemony, fueled by concerns over China's rapid technological advancements, exemplified by the "Deep Sea News" incident. As the discussion pivoted to Trump's approach, Woo contrasts Trump's deal-making style with the more zero-sum approach of some of his advisors, suggesting that the current escalation is less about Trump himself and more about the influence of China hawks within his administration. For instance, Woo highlights the 145% tariff on Chinese goods as a sign of this aggressive stance. In contrast to the initial trade war, Woo predicts severe economic consequences for the US, including inflation and potential recession, as the current tariffs leave Chinese companies with fewer options to circumvent them. What this means for the future is a prolonged "war of attrition," with little prospect of a quick resolution, as both sides seem entrenched in their positions and public opinion is hardening.
