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Trade war with China senseless move on US part: Expert

Xinhua | Updated: 2018-04-19 16:46
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SAN FRANCISCO - A US trade war with China would create an uneven playing field, go against America's own interests, and would be "a move that makes no sense" for US President Donald Trump, a US business expert said Wednesday.

"As the United States and China approach the brink of a trade war, it would be wise to cast aside the inflammatory rhetoric to weigh the cost and benefit of such a war to the American people," George Koo, a member of the Committee of 100 (C100), a leadership organization of Chinese Americans in business and government, wrote in a signed article that appeared in the local San Francisco Chronicle Wednesday.

A general tariff on goods from China would force the Chinese sellers to either raise the prices or take the products elsewhere, Koo said, adding that in either case, the cost for American households would go up.

President Trump announced earlier this month that his administration would impose steep tariffs on Chinese imports worth $50 billion for what he alleged "unfair trade practice leading to a huge trade surplus."

China responded with a 25-percent increase in tariffs on the United States' biggest exports to China, including soybeans and certain types of aircraft, which are estimated at $50 billion.

Koo said China's export of household items and consumer goods "represents good deals that the American public would be foolish to turn down."

If the trade frictions escalate, the Chinese consumer has choices and does not have to buy American products, he said.

Koo cited California red wine as an example. He said it took California 15 years to develop a customer base in China for the state's wine.

"If that export were penalized by China's reciprocating tariff, the market California has worked hard to create would benefit winemakers in Australia, Chile and South Africa, all eager to fill the void," he said.

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