China Tells the U.S.: In Trade Wars, Nobody Wins
(BEIJING) - There are no winners in tariff or trade conflicts, nor in the battles over technology or industry, asserted the Chinese ambassador to the United States following Donald Trump’s electoral victory. Ambassador Xie Feng urged American businesses to invest and conduct business in China and expressed his desire to strengthen dialogue and collaboration on global issues such as climate change and artificial intelligence during a speech at a U.S.-China Business Council dinner, which was published on the embassy's website.
In his speech, he didn’t directly mention Trump or the U.S. elections. "China and the United States can achieve many important and positive things through cooperation, and the list of collaboration areas should keep growing," he said. Trump's return could reactivate issues from his first presidency, when he launched an intense trade war with the world’s second-largest economy in 2018, although a temporary agreement was reached just before the COVID-19 pandemic in January 2020. The Republican has promised to impose tariffs of up to 60% on imports of Chinese products, a significant jump from the 7.5%-25% during his first term, which would pose considerable risks to China's economic growth. Xie noted that McDonald's has opened the most new fast-food outlets in China over the past year, with about 60% of its global locations in that country, and highlighted that Shanghai is the only major city in the world with over 1,000 Starbucks cafes. "The more success stories of mutual cooperation we have, the better," Xie emphasized. He also commented that the differences between both countries should drive exchange and mutual learning, rather than "a reason for rejection and confrontation," and stressed that each nation’s achievements should be seen as opportunities for the other.
It’s clear that trade relations between nations have a significant impact on global economic stability. Economic interdependence means that tariff conflicts affect not just the involved nations but also markets worldwide. Companies need to prepare for these changes by adapting and seeking opportunities amid uncertainty. Cooperation and dialogue are key to mitigating the negative effects of any trade war and moving toward a more prosperous future.
