STORY HIGHLIGHTS


BIZ leaders,scholars criticize us tariffs

CNC
Added On July 9, 2018

 Business leaders and scholars from the world's leading economies have criticized the trade tensions initiated by Washington, which will have profoundly negative consequences. 

 
The U.S. additional tariffs of 25 percent on 34 billion U.S. dollars' worth of Chinese imports took effect Friday. 
 
Economy Report has the details. 
 
China's customs authority announced that additional tariffs for some imports from the United States worth the same amount, including agricultural products, vehicles and aquatic products, all of which took effect on Friday.
 
Chinese manufacturers and U.S. businesses operating in China have expressed concerns that the United States launching the largest trade war in economic history, which could impact the global trade order and inflict losses to U.S. consumers and businesses on both sides.
 
Yukon Huang, former World Bank country director for China told CNC that trade wars are very unproductive and will not benefit either side.
 
SOUNDBITE (ENGLISH): YUKON HUANG, Former World Bank Country Director for China 
"The no market status makes it easier for U.S. policy policymakers to think about what are called protectionist trade measures. A living of dumping penalties. Higher tariffs. This creates what I called trade tensions. It often leads to trade wars. Trade wars don't benefit either side, they are very unproductive. How should you deal with trade issues? How should you deal with Section 301, concerns about unfair practices? The answer should be liberalization of policies on both sides that benefits both countries."
 
Yukon believes that U.S. trade deficits with other countries are increasing because the American economy is rebounding, and its budget deficit is increasing.
 
SOUNDBITE (ENGLISH): YUKON HUANG, Former World Bank Country Director for China 
"I think they will get more tense. First of all, the trade deficit is going to increase, not decrease, and the trade deficit with China is going to get bigger. So if you are already concerned here in America with trade deficit with China. And you asking we need to reduce it while the opposite is going to happen. But why is it going to get bigger because the American economy is actually rebounding growing reasonably fast. Secondly the budget deficit is increasing by definition inevitably U.S. trade deficit will get larger. But that's my point that shouldn't matter but people have said it is a big issue is not an issue at all. OK. So I think that the situation will get tense. This is a consequence of what I call a faulty understanding of what the rule trade is. Trade is actually multilateral involves trade across countries. The White House here tends to think of trade is bilateral. So look at the bilateral trade deficit with China, with Mexico, with Canada with Germany with Korea with Japan. "
 
Tomoo Marukawa, visiting Professor at the Institution of Social Sciences of the University of Tokyo, said the American tax on China is meaningless and ineffective.
 
The professor said the United States is outside the framework of WTO rules, so it would be legitimate for China to retaliate against the U.S. for not complying with WTO rules.
 
SOUNDBITE (JAPANESE): TOMMO MARUKAWA, The University of Tokyo
"According to Trump, if China decides to retaliate, he would additionally raise taxes on 200 billion U.S. dollars, 400 billion dollars of Chinese products. If things really turn out this way, it is going to be a problem. This will not only affect both China and the United States, but will also impact the world economy. So, I think it is very important not to start such chain retaliation."
 
He also noted that the tariffs will result in companies moving production from the United States and choosing instead to produce in another country and export to the United States.
 
On Friday, China General Chamber of Commerce-USA (CGCC) said the current trade dispute between the U.S. and China can only be resolved through dialogue and negotiation.
 
The CGCC said the trade dispute ignited by the U.S. between the world's two largest economies has already caused "serious disruption in global and local markets". 
 
It could also potentially create significant damage and distress to companies, workers, and consumers in virtually every industry across the world.