This rapid shift in the White House’s stance toward China within less than a month is largely due to Beijing’s resolute countermeasures in defence of its own interests, experts said. — China Daily
WASHINGTON: As the United States clearly leverages tariffs as a bargaining chip in its dealings with trade partners, the rest of the world must stand together to respond in a cooperative manner, rather than negotiate for Washington’s mercy, economists have urged.
“The US economy is large indeed, but it only makes up 15% of global trade,” said Justin Yifu Lin, former World Bank chief economist and dean of the Institute of New Structural Economics at Peking University.
“If the rest of the world, accounting for 85% of world trade, comes together to oppose the US tariff wars and pursues economic exchanges in a more open and mutually beneficial manner, the United States will only end up hurting itself more than other economies,” Lin added.
US President Donald Trump said on Tuesday that the 145% tariff he imposed on Chinese imports “is very high” and it “won’t be that high “and will eventually “come down substantially”, as he expressed optimism about future talks to reach a trade deal between the world’s two largest economies.
This rapid shift in the White House’s stance toward China within less than a month – from one of maximum pressure to a more conciliatory approach – is largely due to Beijing’s resolute countermeasures in defence of its own interests, rather than any willingness to compromise in negotiations with Washington, experts said.
On Tuesday, White House press secretary Karoline Leavitt said more than 100 countries have reached out to the United States to initiate trade talks after Trump announced sweeping universal tariffs earlier this month, with 18 nations having submitted proposals.
China is not among these. Instead, the multiple rounds of US tariffs on Chinese imports have prompted China to hit back with counter-tariffs on US exports totalling 125%.
“When smaller economies, whether it’s Asean or African nations, attempt to negotiate with the United States one-on-one, they lack sufficient bargaining power to obtain the concessions they desire, as the United States holds a much stronger negotiating position,” Lin said.
Another problem when dealing with the United States is that even if these smaller economies agree to certain terms, the United States may demand even more concessions from them.
“I hope that all countries can work together, not only for their own interests, but also for the collective wellbeing and development of the entire world.”
Yang Weiyong, an associate professor at the University of International Business and Economics, said that China, as the world’s second-largest economy, can seek deeper economic cooperation with Europe by proactively expanding imports from the continent and even cutting all tariffs on imports from the European Union to zero.
There is also significant room for China and the European Union to strengthen two-way investment flows by resuming negotiations on the China-EU Comprehensive Agreement on Investment.
Despite the external pressures stemming from Washington’s tariff hikes against Beijing, experts believe that China is capable of achieving its annual growth target of around 5% this year. — China Daily/ANN
