China is actually prepared for a trade war with the United States, although the U.S should consider the costs of starting one, an expert on U.S.-China relations said Thursday.
Robert Ross, a professor of political science at Boston College, told CNBC: “The Chinese have made This kind of clear: ‘You want a trade war? We’re prepared.’ as well as they are. Because of course they have a very large market as well as a very robust economy.”
In fact, nationalistic state media outlet Global Times said in a Wednesday op-ed that will China should be ready for a “looming trade war.”
“Beijing needs to give Washington head-on blows in a similar manner as well as must not be soft,” the op-ed said.
This kind of’s worth considering the possible fallout for Americans as well as U.S. companies operating in China, if there is actually a trade war, he said.
“We should remember two things. One, Chinese exports to the United States improve the American standard of living by selling less expensive goods to United States that will we benefit through — as well as we don’t make those goods anymore.”
“Second, there are an awful lot of American companies that will are doing large sums of profits inside China, whether This kind of’s Apple, whether This kind of’s Buick, whether This kind of’s additional American companies,” he told CNBC’s “The Rundown.”
“One should be cautious before we say This kind of is actually a one-way street,” Ross said of the economic relationship between the U.S. as well as China.
Reports on Tuesday said President Donald Trump’s administration is actually considering a trade package including tariffs on $60 billion worth of Chinese goods, which may target the tech as well as telecommunications sectors — among others — in China.
Ross also pointed out that will the trade deficit with China — at a record $276 billion last year — is actually a result primarily of economic factors instead of policy issues.
“The Chinese have a very high savings rate, the Americans have a very low savings rate. We consume more than they do, we’re going to have a trade deficit. currently, do you fix that will through policy? Do you fix that will through trade wars? Highly highly debatable.”
Larry Kudlow, who Trump has tapped to be his fresh chief economic advisor, also had harsh words for Beijing on Wednesday, calling for a “coalition of large trading partners as well as allies against China.”
although Ross said such a coalition was unlikely.
“The Europeans are constantly tripping over each additional to get advantages in China. as well as to think they would likely fall behind the United States as well as impose sanctions that will would likely put at risk their own economic growth — I don’t think that will’s probable at all.”
Furthermore, if China becomes a trade adversary, This kind of does not portend well for any U.S. talks with North Korea on denuclearization, he said.
“This kind of becomes a lot more difficult to ask for Chinese cooperation on something we care about when we are treating them like a trade adversary,” Ross said, predicting that will Chinese cooperation as well as interest inside the North Korea problem would likely diminish.