The fear of North Korea has been twenty years in the making. No doubt this has been the product of an illegal weapons program brewing in the region for the span of two decades. This issue has come to the forefront on Donald Trump’s agenda, causing him to strike a trade negotiation deal with China’s President Xi Jinping. The caveat, that China will stand with the US in confronting North Korea.
Even before securing his spot in the White House, Trump had promised to label the Chinese as a “currency manipulator.” He has since changed his tune, citing a need for a united front between the world’s two largest economies. This is because the US needs Bejing to “confront” his ally North Korea over launched missiles that created frenzy at the U.N. Additionally, The Foundation for Economic Education emphasizes that, “Never have the U.S. and Chinese economies been more interdependent than they are today.” The news broke later in an interview with Wall Street Journal, Trump stated that he would allow the trade deficit with China and continued that it was “not as good a trade deal as I would normally be able to make.”
While we do not yet know the intricacies of how this will affect trade with China, we will soon see the effects on the global economy. Ones that according to the White House, are not nearly as dire as the ever-present threat of North Korea.