In the past decade, many countries in Asia outside of China have experienced significant economic growth, leading to a changed trade landscape that Donald Trump would face if he becomes president. During Trump’s first term, he took a direct approach with China, abandoning Obama’s plans for a Pacific trade pact and launching a trade war instead. Since then, under President Joe Biden, the trade dispute with China has continued to escalate.
As Asian countries have become wealthier, Washington has become increasingly wary of business ties with China. The Biden administration has maintained tariffs on Chinese goods and implemented legislation to support domestic manufacturing and reduce reliance on Chinese influence. Treasury Secretary Janet Yellen recently confronted Chinese officials over unfair economic practices and overcapacity in trade markets.
Despite the economic prosperity in the region, the U.S. has missed opportunities to strengthen its presence in Asia-Pacific trade. The absence of the Trans-Pacific Partnership (TPP) has hindered the U.S.’ strategic commitment to East Asia. While the U.S. still has a mutual defense treaty with the Philippines, greater economic ties with the region could have signaled a stronger commitment.
China, on the other hand, has deepened trade relationships with its neighbors in recent years, benefiting from the growing prosperity in the region. Trade experts have noted that the U.S.’ focus on bilateral tensions with China has overshadowed the importance of China’s trade partnerships with other countries.
In summary, the changing economic landscape in Asia has implications for future trade policies, and the U.S. may need to reassess its approach to trade relationships in the region.
