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No trade war between China and the US in 2018, experts say

Monday,Feb 05, 2018

 

A trade war between China and the United States in 2018 is unlikely, despite US President Donald Trump naming China as a major economic rival in his first State of the Union Address, according to experts.

“China has persistently exercised restraint on the trade front to lessen the possibility of a China-US trade war breaking out in 2018,” said He Ning, a former minister for trade and economic affairs at the Chinese embassy to the US, saying that he was “cautiously optimistic” about the bilateral relationship.

Currently, the US is experiencing its largest economic recovery since World War II and secondary production including infrastructure construction is what Trump aims to focus on in the coming years, whereas the Chinese economy is currently being lifted by emerging industries such as big data, AI, and global logistic networks, Kang Yong, the chief economist of KPMG China, told a seminar held Wednesday by Center for China and Globalization in Beijing.

The remarks came in response to Trump’s address on Jan. 30, when the US president said that his nation faces “rogue regimes, terrorist groups, and rivals like China and Russia that challenge our interests, our economy, and our values.”

China-US trade is now closely dependent on both sides, according to Huo Jianguo, the former dean of the Chinese Academy of International Trade and Economic Cooperation. He considered the win-win cooperation in international trade will be embarked on the efficient dialogue with no conflict and confrontation.

Based on the overarching message to balance the bilateral trade relationship, China aims to preserve export competitiveness and enhance the added value of export goods. The Chinese surplus with the US will either be reduced or remain as is, Huo said. “But China expects stability in the economic relationship,” he said.

However, friction and disputes, mainly in form of non-tariff barriers, sustain an entrenched status in international trade, argued Shou Huisheng, a researcher at Tsinghua University’s National Strategy Institute. (by Wang Yuan)

 

From People’s Daily, 2018-2-1

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