Dr. Li Wei in an exclusive interview with People's Daily. (Photo: Zhao Dantong/People's Daily)

The United States announced it was preparing to slap 10% tariffs on another $200 billion in Chinese goods as soon as September. 

Dr. Li Wei, Director of the Institute of America Oceanic Studies at the Chinese Academy of International Trade and Economic Cooperation, shares his opinion in an exclusive interview with People’s Daily on the US-China trade tensions. 

Dr. Li says, “From this $200 billion tariff list, there is a wide range of products including agricultural products, textile products, and machinery and electronics. These products have very close relevance with US consumers and manufacturers. If Trump imposes a 10% tariff on those products, it will add more burden to consumers." He thinks this round of tariff could potentially be the bullying tactics.

When asked how much the tariffs will affect China, he said, “The tariffs will influence China, but the influence can be limited.” 

Dr. Li listed three points that will limit the influence of US tariffs on the Chinese market. 

Li notes, “The US is not the only market for Chinese exports. More than 80% of Chinese exports are to the rest of the world. I think enterprises can try to pursue the market diversification for their export.” 

He added that, “Chinese products are quite competitive. Many Chinese products cannot be easily substituted. On that stance, the influence will be limited.” 

Dr. Li also said, “The Chinese market is huge, and we are trying to develop consumption upgrading as well as pushing towards the supply side structural reforms, and that will nurture a very huge domestic market for our country."