Trump Must Address China Trade or He’ll Undercut US Manufacturing | Opinion

President Donald Trump has taken a unique approach to U.S.-China trade, imposing tariffs and recalibrating trade flows. However, Chinese leader Xi Jinping has countered these measures by restricting critical minerals, manipulating the renminbi, and establishing workarounds. While the U.S.-China trade deficit has shrunk, China still maintains a massive trade surplus.

As Chinese President Xi Jinping arrives in Washington for a high-stakes summit on September 24, Trump faces a critical moment. The three "C" factors—cars, currency, and chips—pose significant risks to American manufacturing. China's auto industry is growing and could become an existential threat to American auto jobs. Trump's comments about allowing Chinese auto factories in the U.S. while keeping imports out seem counterproductive.

Additionally, China's devalued renminbi lowers the effective price of Chinese exports, undermining U.S. trade enforcement mechanisms. Lastly, China's chip industry is crucial for U.S. microelectronics, and Trump's hesitance to fully endorse domestic chip production raises concerns about the success of his commitment to reshoring.

If Trump fails to address these issues, he risks undermining the gains he's made in U.S.-China trade relations.