Trade war to hurt US more than China

Source:Global Times Published: 2018/3/28 0:03:40

The US will probably release a specific list of tariffs on Chinese products based on the Section 301 investigation as early as Tuesday local time, involving more than 1,000 products. Making the list seriously violates WTO rules and the reciprocity principle. The US is taking another step down the wrong path.

As far as the Global Times knows, China has nearly completed its list of retaliatory tariffs on US products and will release it soon. The list will involve major Chinese imports from the US. This will deal a heavy blow to Washington that aggressively wields the stick of trade war and will make the US pay a price for its radical trade policy toward China.

Beijing and Washington recently had some discussions on trade disputes. The US made some unreasonable demands in an attempt to coerce China into a compromise. This was naïve. With strong trading power, China held its ground. We have weathered bluster before from previous US administrations. Today China has more means than ever to counter US measures, but the US hasn't shown any new tools. Washington should show sincerity if it wants to talk. Intimidation won't work.

Compared to China's list, the US list hurts itself more than China. The tougher the move, the stronger the impact on Washington. This logic will be proven by the US government's own actions. Restricting imports from China will cause a price hike in the US. Cheap products of a high quality made in China have benefited ordinary Americans, who will have to turn to more expensive alternatives. China's countermeasures will hit US exports, dampen employment and hurt the US economy.

There are deep-seated reasons for a trade imbalance between China and the US. It is the result of a global labor division and cannot be changed in one American government. It's a delusion for Washington to request that China cut the trade surplus by $100 billion. It's frantic thinking worthy of total disdain.

The US will be derided in history for using outdated tools to address the issues of the world's largest two-way trade. China's extensive retaliation will add to Washington's chaos. The US administration thinks it's creating history, but unfortunately it will become a laughingstock.

China will also suffer losses from the trade war, but is able to handle the problems thereby caused. The Chinese public understands well that the government is trying to minimize the impact of the trade war and will firmly support government steps under the leadership of the Communist Party of China. Social unity will supply strong backing for the country's countermeasures.

Since reform and opening-up, the Chinese people have maintained a broader horizon and more calmness. They take the Party and government as the backbone and act in a rational manner.

The US tariff list can bring serious consequences, but strategically it is just a pebble on the road of China's rise. With technological progress and a developing domestic market, China boasts great economic and trade potential. Dealing with a trade war waged by the US will help China grow.

Posted in: EDITORIAL

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