Macro-Finance Salon (No. 125): The Evolution of China-US Trade War

2019-06-30 IMI

On June 30, Macro-Finance Salon (No. 125) was held at Renmin University of China. Mr. Yao Zhizhong, deputy director of the Institute of World Economy and Politics at the CASS, made a keynote speech on the Evolution of China-US Trade War. Mr. Wei Benhua, Former Deputy Administrator of the State Administration of Foreign Exchange, Prof. Di Dongsheng, Associate Dean of the School of International Studies at Renmin University and IMI Research Fellows Qian Zongxin, Zhang Jinfan and Jing Linde, participated in the salon. The salon was chaired by Prof. Wang Fang, Assistant Dean of the School of Finance at Renmin University. Yao Zhizhong elaborated on China-US trade war issues from the perspective of international relations politics and economics. He believes that the current goal of the US trade war is to reduce the trade surplus and gain greater benefits by adjusting trade relations and to prevent China from catching up and weakening China's development potential. In response to these two goals, the United States has two corresponding policies toward China: the first is to adjust trade relations to reduce the US trade deficit and promote the US's own economic development; the second is to weaken China's development potential and curb China's economic development. These two policies are consistent with the US national security strategy. Promoting US prosperity and maintaining US influence are the core interests of the US national security strategy. Under this circumstance, China’s first strategy is to develop the ability to harm the interests of the United States. The greater the benefits China can provide to the United States, the stronger its ability to harm its interests. The second is to continue to develop the ability to stabilize the domestic economy and society, to maintain stable economic development is a very important means and the Americans have to pay to incite us.

In the discussion, Wei Benhua believes that the solution to the problem should allow the international community to have a correct understanding of the trade surplus and deficit between China and the United States. This is originally an economic issue, and the US has unprincipled expansion into the field of science and technology. Even in the field of national security, this does not comply with the rules of international trade. Therefore, we need to adhere to and emphasize the principle of multilateralism. We should return to the WTO system or negotiate a solution to a regional trade agreement. Later, from the perspective of international political economy, Di Dongsheng talked about his views on the US medical reform and inheritance tax.

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Macro-Finance Salon (No. 125): The Evolution of China-US Trade War

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