China says it does
not want a trade war with US
This article states how China does not want a trade
war with the US but will defend its interests in spite of Trump’s claim of import
duties on steel and aluminum. Trump emphasized that trade wars were good and
easy to win, a day after he mentioned to put duties of 25 percent on steel
imports and 10 percent on aluminum products. The trade between the two largest
economies were hazy once Trump took office in 2017, and although China only
accounts for a fraction of U.S. steel imports, the lower steel prices account
for its massive industry expansion.
As stated in the article, Chinese Vice Foreign
Minister Yesui mentioned that negotiations and mutual openings were the best
ways to resolve trade frictions. If trade policies are made on the basis of
mistaken judgements or assumptions, it would damage trade relations between
these two countries and affect long term economic growth.
According to Trump, restricting trade will save
American jobs, but in reality, because of widespread tariffs on aluminum and
steel, prices would increase and this would affect users like the auto and oil
industries and affect employees.
In the article, it is stated that Trump believes in a
balanced trade relationship with China, along with potential trade sanctions
into China's intellectual property practices and pressure on foreign companies
for technology transfers.
In the long run, it will be interesting to notice the
trading relationship between United States and China, and whether the occurrence
of a trade war could affect both economies in the long run. If both countries
would want to benefit economically, they need to reach a mutual agreement.
1 comment:
A trade war with China has been a concern since before Donald Trump won the presidency. I truly believe President Trump's business acumen is too vast too start a trade war with the global power that China is.
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