Opinion | Another US-China trade war? How about a war on income inequality

For Chinese leaders to reach an agreement with Trump, who styles himself as a deal-maker, they must understand the factors that led to him being elected twice.

As my book Is China a Menacing Empire? points out, Trump rode a wave of discontent among less-educated Americans. Trump won votes by blaming the influx of cheap Chinese goods into the US on the loss of American jobs. To be fair, the growth of Chinese exports to the US has also benefited the lives of some in Trump’s support base.

US imports from China jumped to US$427.2 billion in 2023 from around US$100 billion in 2001, according to data from the US Bureau of Economic Analysis. The US trade deficit grew during the same period, reaching US$279.4 billion in 2023.

Imports of cheap Chinese goods have expanded the purchasing power of Americans of all classes. Hence, Americans overall have prospered from the influx of cheap Chinese goods into the US. However, university-educated Americans are much better off than their non-university-educated counterparts.