Wang Qishan: US-China Trade War Harming Interest of Both Sides

Wang Qishan: US-China Trade War Harming Interest of Both Sides 

Last updated on August 29th, 2020

Speaking of the US-China trade war, Chinese Vice President, Wang Qishan briefed international leaders at the World Economic Forum (WEF) on Wednesday, stating that the tensions between Beijing and Washington “harm the interest of the both sides.”

A trade war between the two nations escalated last year, with both sides imposing tariffs on each other’s goods worth millions. The move made a huge impact on the markets and even unsettled the demand and supply forces.

Nonetheless, the extent of jeopardy was limited on the sidelines of the G20 summit in Argentina, December 2018, when the two sides agreed for a 90-day -period to settle the dispute. The comments of the Vice president have thus, come ahead of the deadline to sign a new contract on 2 March.

“For the Chinese and U.S. economies, I believe they are in state of (being) mutually indispensable,” Wang said, according to a WEF translation. He added, “This is a reality, either side can’t do without the other side. So, the conclusion is that there has to be a mutual benefit and win-win (relationship).”

The annual gathering at Davos was expected to see both the leaders hold the talks on the future of the deal. However, that could not happen following the US’ withdrawal from the summit because of the partial shutdown of the government.

The next round of negotiations is scheduled to take place at the end of this month, as Vice-Premier Liu He travels to meet the US officials in Capitol Hill.

The US has already imposed taxes on Chinese goods worth $250 billion and has also bludgeoned about doubling the duties, Chinese capital in return has imposed tariffs on the USA’s goods worth $110 billion.

Apart from a trade war, Executive Chairman of WEF, Klaus Schwab, questioned Wang for his thoughts about globalization. To which he said, “Now we do face a lot of imbalances … And for those groups of people who feel the imbalance, they are making their responses. I believe it is understandable and inevitable.”

“For those people who question globalization because of the imbalances, once their interests are well protected, this counter wave against globalization will phase out,” Schwab added.

For years the wave of globalization has promoted the growth of the markets, helped to create better job opportunities, and promoted better standards of living. However, the concept has gradually started to fall, especially after the increased use of automation, old industries disappearing, and migration disturbing the established order.

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