President Trump has made it clear that he wants to reduce the U.S trade deficit with China. If he follows through on his campaign promises to impose tariffs, how would China react? Is a trade deficit with China necessarily a bad thing for the US? One of the most thought-provoking economists on China, Michael Pettis examines the trade relationship between Washington and Beijing, and explains how the Chinese growth model is facing unique challenges. Michael Pettis is a senior fellow in the Carnegie Asia Program based in Beijing. An expert on China’s economy, Pettis is professor of finance at Peking University’s Guanghua School of Management, where he specializes in Chinese financial markets. Pettis is also editor of China Financial Markets, which offers monthly insights into the financial and economic dynamics of China and the global economy. Learn more at ChinaFinancialMarkets.org.