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Chimerica heading for a divorce?

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President Trump and China President Xi Jinping were one belly-bump shy of a bromance during last month’s trade talks. But now, U.S. and China are back at each other’s throats. 

U.S. hits first

The Trump administration voted against recognizing China as a “market economy” in the WTO—a status that would allow China to export goods around the world at cheaper prices than competing countries. 

What allows China to sell at cheaper prices? For one, government-backed subsidies that enable Chinese companies to trim expenses from their operations.

But China’s up in arms about the U.S.’ opposition. That’s because after joining the WTO in 2001, it was guaranteed market economy status 15 years later. 

So naturally, Xi kicked back

As the world’s steelmakers gathered Thursday to discuss a global oversupply, China crossed its arms and refused to slow down production (or at least, to be the only one slowing down production).

And that’s an issue, considering the country controls~50% of the world’s supply.

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