(Photo: CGTN)

The escalating trade frictions between China and the US have become a major issue discussed at the annual Boao Forum for Asia conference in Hainan. Any move taken by the world’s two largest economies will surely impact other countries as well. Jenny Shipley, prime minister of New Zealand during the late 1990s, shared her thoughts with CGTN on the China-US trade rows.

Shipley said a trade war could be very dangerous as it would raise the costs of commodities and living, as well as drive up inflation. It ultimately hurts the life of people in all the countries involved.

“There is nothing to be gained by actually promoting increased tariffs through retaliatory mechanism,” said Shipley.

Shipley pointed out that solving the conundrum through the World Trade Organization (WTO) is the safest way to solve trade disputes. She supports China’s proposal to turn to the WTO. From New Zealand’s experience as a participant and observer, bilateral and multilateral trade agreements have been proven highly successful for economies and the people living in them, she added. Taking a defensive position would only damage the interests of ordinary people.

“If people get defensive and go backwards, put tariffs up, the people who get hurt are ordinary folks in those societies,” said Shipley.