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Chinese Vice Premier Liu He talks with U.S. Trade Representative Robert Lighthizer. Chinese Vice Premier Liu He, right, talks with U.S. Trade Representative Robert Lighthizer at the Diaoyutai State Guesthouse, in Beijing, Feb. 15, 2019 (AP photo by Mark Schiefelbein).

The Next Stage of the U.S.-China Trade War Will Be Much Worse

Tuesday, Aug. 20, 2019

Editor’s Note: Guest columnist Edward Alden is filling in for Kimberly Ann Elliott this week.

The trade war between the United States and China has entered a new and dangerous phase. Both countries have moved from using tariffs and other trade sanctions in a reasonably strategic fashion in order to try and strengthen their negotiating position into a series of punitive measures designed to inflict significant economic harm on the other. As markets signaled last week, with stocks taking a roller coaster ride and bond yields plunging, the risks of an unconstrained economic conflict have risen substantially. ...

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