Main points of contention
- Marxist ideological foundation versus a Judeo-Christian philosophical foundation
“In god we trust” versus a centrally controlled and designed market model
- China's inability to open up markets internationally due to challenges in finding a sustainable way to separate market from government
- viewing the Party as above the market leading to difference in way IP ownership is viewed
- The Chinese dream versus the American dream
China's dumping strategy which lead to the severe imbalance of trade and thus steady US job losses over the past years
- China's strategy of acquiring US technology via forceful knowledge transfer due to its point of view on markets which resulted in the blacklisting of Huawei
- China’s intention to establish leadership over two thirds of the world's population thus challenging US dominance leading to the election of a hawkish US president
Assessment of situation
- The issue is deeply structural and resolution will be unlikely during Trump's current term of service
- Companies within impacted industries will continue experiencing negative headwinds well beyond 2019
- US companies will gradually shift production to the US and other parts of the world as President Reagan’s hypothesis on China's successful transition to a market economy gets invalidated
- World splits into two distinct economic blocs
- Chinese economy will face continued pressure given the following concerns
aging population
- lack of room for further domestic growth
- none granting of WTO market status
- US untangles its free market economy from the Chinese centrally controlled market economy as the latter slips into recession
Related references
- [*The governance of China*, Xi JinPing](https://garyteh.com/2019/05/key-take-aways-from-the-governance-of-china-by-xi-jinping/)
- [*Great Again*, Donald Trump](https://garyteh.com/2019/05/key-takeaway-from-great-again-by-donald-trump/)
- [*Why the west rules for now*, Ian Morris](https://garyteh.com/2018/02/book-summary-why-the-west-rules-for-now/)
- [Ray Dalio on difference in US bottom up/China top down approach towards markets](https://www.youtube.com/watch?v=Y23w_hzMS-c)