(NewsUSA) -We do not know what will come out of the meeting between President Trump and Xi Jinping at the G-20 on June 28, but the signs are ominous. The state-promoted anti-American propaganda blasting U.S. "bullying" on trade and the resurgence in Chinese nationalism stoked by Xi Jinping augur poorly for successful trade negotiations with China. And any deal made by Trump is likely to be attacked by Democrats as too weak, so Trump at this point has little incentive to make a deal with China before the 2020 presidential election.
My prediction is that China will not drop its equity caps and intellectual property theft, and will not stop subsidizing all of its state-owned enterprises. As a result; we will see acceleration of the decoupling of China from the United States, in other words, a reversal of the economic integration and interpenetration that has taken place between these two economies over the past 20 years. So let us examine the implications of the decoupling of China from the United States.