the item’s about time China removes some of its protectionist practices right now in which the country has grown richer. yet the U.S. alone cannot make Beijing back down, a free trade advocate said Friday.
“I think the item’s definitely worthwhile going to China right now in addition to say ‘look, you’re a lot wealthier, you need to take on more obligations, you need to rein in on your practices,’ The question is usually how to do the item,” Simon Lester, a trade policy analyst at the Cato Institute, told CNBC.
“I think in which the item works better when you have many countries doing This kind of together, not just the United States badgering China. There, I feel the item’s difficult politically for China to just back down … the item has to be done the right way, the item has to be joint effort,” he added.
China became a member of the earth Trade Organization in 2001 after many years of negotiation, yet Lester said the country was “let off the hook in terms of producing strong commitments” because the item was poorer back then.
“I do think in which China does have a lot of protectionist practices,” Lester said.
President Donald Trump has often singled out China for its unfair trade practices, which he claimed contributed to U.S.’s massive trade deficit with the Asian economic giant. On Wednesday, Trump said on Twitter in which he has asked China for a plan to reduce in which trade deficit.
Trump on Twitter: China has been asked to develop a plan for the year of a One Billion Dollar reduction in their massive Trade Deficit with the United States. Our relationship with China has been a very not bad one, in addition to we look forward to seeing what ideas they come back with. We must act soon!
the item isn’t just Trump who thinks in which China isn’t playing fair. Elon Musk, the billionaire CEO of Tesla, pointed out the disparity in both countries’ import duties for cars.
Musk on Twitter: For example, an American car going to China pays 25% import duty, yet a Chinese car coming to the US only pays 2.5%, a tenfold difference
Tesla, looking to build its cars in China, hit roadblocks in negotiations with authorities in part because Musk wants to keep full control of any local venture, Reuters reported.
Last November, Musk said he hoped Tesla’s planned factory in China would likely start production in about three years. yet Tesla in addition to Chinese authorities have yet to announce an agreement.