Views:3 Author:Site Editor Publish Time: 2019-05-31 Origin:Site
Perhaps even the US does not see advantage in a total breakdown in bilateral relations. So the trade negotiations are likely to drag on until after the US presidential election, although an interim agreement for both sides to rescind some of the tariffs and to defer additional tariffs cannot be ruled out.
Competition between China and the US for economic and technological dominance is likely to be the "new normal" in the coming decade. A real risk for China's economy is in being isolated from the rest of the world. China should continue opening up its economy to global trade and cross-border inbound and outbound direct investment, by reducing tariffs and non-tariff barriers and extending national treatment to foreign companies, on a reciprocal basis.
This should make the Chinese economy and its enterprises more efficient, and therefore stronger, and further improve the living standard of the Chinese people.
The author is Ralph and Claire Landau professor of Economics, Lau Chor Tak Institute of Global Economics and Finance, The Chinese University of Hong Kong, and the author of The China-U.S. Trade War and Future Economic Relations.