WORLD PD Talk: Trump's trade war hurts home industries, the whole world

WORLD

PD Talk: Trump's trade war hurts home industries, the whole world

By Ni Tao | People's Daily app

23:19, July 12, 2018

In this episode of PD Talk, we are delighted to be joined by Dr. Li Wei, director of the Institute of American and Oceania Studies at the Chinese Academy of International Trade and Economic Cooperation. He shared with us his opinions on US-China trade tensions. 

He said the Trump administration's recent announcement that it would slap 10 percent tariffs on another $200 billion worth of Chinese goods is potentially a bullying tactic. He said the products included in this $200 billion tariff list have very close relevance to US consumers and manufacturers, which will add more burdens to its consumers.

He said the trade imbalance between China and the US can be explained by several macroeconomic factors. First, the US and China are in different economic development stages, and they have economic complementarities. Secondly, the US savings rate is too low, and it has to lend to run its trade. Thirdly, it’s about US dollar hegemony.

When asked about the accusations of China's IP "theft" and limiting market access from the US side, he said the accusations are unfair. He added that China has made solid achievements in those areas since joining the WTO. The fact that the tariffs mainly target China's high-tech industries also reflects a US lack of confidence.

(Video by Zhao Dantong, Qiao Wai, Liang Peiyu and Wu Kai)

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