Song Zhang Bureau Chief of Washington Wen Hui Daily said that it is quite likely now that this dispute between the two countries will escalate because the Chinese have already retaliated and the next level of retaliation from Trump is going to be there as he has indicated in a rally.
"He in fact intends to take it up all the way to $500 billion worth of trade. So there is a larger dynamic being played here where his concerns or at least the Mr. Trump administrations concerns about intellectual property, about the bi-lateral surplus growing vis-à-vis China all of them have coalesced into this major argument that politically for him it is unsustainable if he does not take these decisions," he said.
"The politics and economics of this for Mr. Trump makes sense, it may not make sense for the rest of the world. Now that the Chinese have retaliated, we are all waiting to hear 16 weeks down the line what Mr. Trump does. So we are on an escalation ladder and I think all the countries around the world had hoped in the past that it would not come to this, it has come to this and I think everyone is hoping now that it would not escalate. I think it is very unlikely in the short-term that the two sides would find a modus vivendi. So I am very doubtful if we can contain that over the next 16 or 15 weeks that we have for the next round of retaliation," he added.
Zhang said that in the last couple of months China and America have been engaged in bilateral trade negotiations for 2-4 times but it failed and the Chinese believed that Trump is not predictable.
"Last time in May, vice premier of China was in Washington DC and there were a lot of discussions and finally reconciliations. However immediately when vice premier returned back to Beijing, Trump seems to have changed his mind. I think now China believes that only after a few rounds of tariff and retaliation from each other, may be the opportunity will come for negotiations," he said
"We hear that Chinese vice President was planning to visit Washington DC by the end of last month but he did not go. So, that shows that China is not believing that his visit may seal any kind of understanding. So, maybe after couple of weeks later when the two countries realise that they will be both damaged, may be the real opportunity will come," he further added.