China outgrowing 'Factory of the World' tag as reliance on imports dips

President Donald Trump talked tough against Mexico, and then essentially agreed to renew the existing trade deal and called that a victory. If only the China spat could end the same way. It won’t. That’s because the gulf between Beijing and Washington is not just caused by recent rhetoric and tariffs. It also goes beyond national security concerns. The inevitable clash stems from how the American and Chinese economies have evolved over decades. Relative to China, Mexico hasn’t shifted much. It has been and remains mortgaged commercially, diplomatically and culturally to its northern neighbour. The White House is fond of citing the merchandise trade deficit with China that America racks up each year. In 2017, it amounted to $375 billion. Sure, it’s big. But the fixation with that number misses the broader point.