Trump’s “China Deal” is Only a Good Deal for China

Larry Summers:

Trump’s “China deal” is only a good deal for China: The events of the last week have crowded out reflection on economic policy.  But things have been happening. Commerce Secretary Wilbur Ross described the trade deal reached with China earlier this month as “pretty much a herculean accomplishment….This is more than has been done in the history of U.S.-China relations on trade.”

Past a certain point, exaggeration and hype become dishonesty and deception. In economic policy, as in almost everything else, the Trump Administration is way past that point.

The trade deal is a “nothing burger” that a serious Administration committed to helping American workers would likely not have accepted, and surely would not have hyped. … [gives details of the agreement] …

Now it is true that a ludicrously hyped squib of a deal is much better than a trade war. So perhaps we should be pleased that the President and his commerce secretary are so easily manipulated. Perhaps our officials know how bad a deal they got and are just hyping for political reasons.

It is an irony of our times that those who most frequently denounce “fake news” seem to most frequently purvey it.