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China not afraid of?trade war with US

chinadaily.com.cn | Updated: 2018-03-11 21:02
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China does not want a trade war, nor will it take the lead to initiate one, Minister of Commerce Zhong Shan said on Saturday. While that might seem soft-toned, it should not be mistaken for weakness, for as he asserted, China is capable of coping with any challenges.

The escalation of the trade disputes between the world’s top two economic powers is set to disrupt normal global trade order and could result in a trade war if the US continues with its irresponsible trade policies, since it would leave China with no choice but to retaliate.

The US’ lop-sided economic structure is actually behind its current pile-up of trade deficits. While it excels in highly profitable high-tech and financial industries, its manufacturing is less competitive.

In the case of the Sino-US trade gap, statistical errors account for about 20 percent of the US’ trade deficit with China, according to working groups from both countries. Another factor is that the US forbids exports of a large number of high-tech products to China. Given the high value of those products, it is estimated that allowing these exports would reduce the deficit by about 35 percent.

It is thus unreasonable for US politicians to continue to hype the fiction that the US’ deficit with China is because the latter resorts to unfair trade practices.

However, Washington’s trade policy regards economic prosperity at home as necessary to promote US power and influence abroad. Therefore, the Donald Trump Administration is eager to aggressively target economic competitors such as China.

The US should be aware that if it continues to engage in protectionism and other unfair trading practices it will find that China is fully capable of defending its interests.

The US will also be a loser if there is a trade war.

 

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