Tariffs on China Are No Solution to Trade Issues, Says Former US Ambassador
Xu Wei
DATE:  Mar 30 2018
/ SOURCE:  Yicai
Tariffs on China Are No Solution to Trade Issues, Says Former US Ambassador Tariffs on China Are No Solution to Trade Issues, Says Former US Ambassador

(Yicai Global) March 30 -- Imposing tariffs on Chinese imports is not only the wrong way to approach trade issues, it is confrontational and does not offer any comprehensive solution, according to the previous US ambassador to China.

In the long run, trade tensions between the US and China are dangerous, Max Baucus told state-run People's Daily. The Trump administration is promoting more antagonistic policies toward the world's second-largest economy, which will lead to heightened tensions, he added.

US President Donald Trump plans to bring in tariffs on Chinese imports worth up to USD60 billion. The administration is targeting high-tech companies as a means of punishing Beijing for allegedly forcing US firms to give up technology secrets in exchange for permission to operate in China, in addition to other intellectual property practices that Washington deems unfair.

US Trade Representative Robert Lighthizer said two days ago that the tariff list on Chinese products will be left open for public comment for 60 days from the original 30 days, meaning levies may not come in until early June. He said it is likely that China and the US will avoid a tariff war through negotiation.

Despite Lighthizer's announcement, China's position on the new US tariffs remains unchanged, Gao Feng, spokesman for China's ministry of commerce, said at a press briefing yesterday. China has said it will take all necessary measures to protect its legitimate interests and rights.

Cooperation Needed

The US and China need to cooperate, Baucus said, as the people of both countries hope to maintain a sound relationship with each other. The countries have a long history of cooperation on major issues and crises such as the Chinese People's War of Resistance Against Japanese Aggression (as the Second World War is known in China), the Korean peninsula, Iran, Syria and other places, Baucus said.

Leaders need to show courage at critical moments, Baucus said, saying both countries should look to the future, keep open-minded and express their respective demands in order to reach a consensus. Relations between the countries are more important nowadays as China continues to grow strong and prosperous, he added. Both should stay calm and listen to public opinion, he said.

Prior to serving as ambassador to China between 2014 and 2017, Baucus spent 35 years in the US Senate. As chairman of the Senate Committee on Finance, he played important roles during some major developments such as Congress's approval of permanent normal trade relations with China in 2000 and China's accession to the World Trade Organization in 2001.

As the longest-serving senator from the US state of Montana, Baucus spared no effort in developing Montana's economic base, including promoting trade relations with China. Montana's grain is mainly exported and part of it is sold to China, he added.

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Keywords:   US,Tariff,Trade Dispute