US-China trade war: Prospects for world

China will be looking for ways to cope with the consequences of the trade war. India may begin to look like an attractive economic partner

There are two aspects of the ongoing US-China trade war. One relates to trade in goods where the US has been suffering from a persistent and significant deficit. There is room for accommodation here, with China assuaging the US by making some big-ticket purchases such as of US-made civilian aircraft, agricultural commodities like soybeans and wheat, and high-end consumer devices. This has been done in the past but trade tensions eased only temporarily. Recently, China organised a very ambitious import fair in Shanghai where President Xi Jinping himself spoke about China's commitment to free trade. He announced, though without specifics,