By Liu Zhiqin Source: CGTN Published: 2018-7-9
The United States has escalated the tension in the trade disputes between the world`s two largest economies by imposing tariffs on Chinese products worth 34 billion US dollars, and are understandably confronted with reciprocal measures by China on goods worth the same amount imported from the US.
But the ongoing conflict is only a trade battle, not a trade war. The impact is limited within a controllable range.
China had no other way out but only by means of retaliation to deal with US hegemony on economic issues. China is reluctant to take part in the conflict with the US, because such escalation of conflict will surely hurt both sides, and no one can escape from being injured by such horrible actions taken by the US.
But since this dispute is only a battle, both sides still have time to resolve the conflict.
For China, the battle is for our glory, for the dignity of our country. It is only a battle to defend our own interests, but the US is pushing to invade into China`s economic territory, which is the lifeline of our country.
China has no other options except engage in self-defense to safeguard its right to further develop its own economy.
The trade battle between the US and China is provoked by hegemonism. US President Donald Trump is extremely self-confident that "a trade war with China is easy to win." However, facts will show them that they have calculated wrong when it comes to the outcome of the conflict.
History will tell the world that the US is repeating its mistake from 1950 when they initiated war on the Korean Peninsula. They miscalculated China’s strength and unity to confront the challenges! In 1953, the Korean War ended with a famous remark made by US General Omar Bradley: “The wrong war, at the wrong place, at the wrong time, and with the wrong enemy."
Regarding the trade battle, we are convinced that years later, the US will realize that they have again waged a wrong war at the wrong time, at the wrong place and with the wrong counterpart!
The trade dispute is not a matter of mathematics. The nature of the dispute covers a vast range of topics including trade structure of the two countries and content of goods co-produced by multinationals. If we calculate the impact on both sides on a per capita basis, 50 billion US dollars will have a tremendously negative impact on American society.
As former Federal Reserve Chairman Alan Greenspan said, all tariffs will be paid by consumers
It is very clear who will be heavily blown by such tariff tricks! That`s why we say there will be no winner in a trade war, and the only difference is to see who will be more seriously hurt.
A battle is only a battle. A trade battle can help China improve its manufacturing infrastructure and export system. China should refrain from the battle so as to prevent the dispute from escalating into a real war that will damage the world trade order and hinder the path of economic recovery.
We still have great hopes and opportunities to create a new trade society with greater fairness and inclusiveness.
China will shoulder her responsibilities to maintain the stability and health in cooperation in order to further boost the development of the global economy.
We must prioritize globalism when making policies. No "Globe First," no "America First." President Trump must understand this!
Liu Zhiqin is a senior fellow at the Chongyang Institute for Financial Studies at Renmin University of China.