Ambassador Zhou Wenzhong on US-China trade skirmish

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By CGTN’s The Point

On Tuesday, Washington published a proposed list of some 1,300 Chinese goods subject to additional 25 percent tariffs, including industries such as aerospace, information, and communication technology, and robotics, whose annual trade value is about 50 billion US dollars.

To defend its rights, China has announced it has reported the US to the World Trade Organization (WTO) and is ready to take countermeasures on US products with equal force and scale.

Washington announced some 1,300 Chinese goods subject to additional 25 percent tariffs, including industries such as aerospace, information, and communication technology, and robotics. /VCG Photo

By starting a trade "war" between the world’s top two largest economies, the Trump administration is not only hurting China but also hurting American companies, said Zhou Wenzhong, former Chinese ambassador to the US and now secretary-general of the Boao Forum for Asia on CGTN’s The Point (@thepointwithlx).

“China-US trade relations are very important for both countries and also for Asia. The size of these two countries and economies is enormous. I think the Trump administration does not completely understand the nature of China-US business relations. Although China has a surplus, many Chinese exports to the US are from joint venture enterprises in China where the US has made significant investments."

Trade globalization loosely represents the proportion of all production that crosses the boundaries of a country, as well as the number of jobs in that country dependent upon external trade. /VGC Photo

In other words, Zhou explained that a lot of exports going to the US from China are products made by US companies based in China or joint venture companies in China with a US investment. Therefore, by announcing new tariffs on some Chinese exports, he feels the Trump administration is not only hurting China but also hurting American companies as well.

Ambassador Zhou Wenzhong has been the secretary general of the Boao Forum for Asia since 2010. He hopes countries that are becoming more protectionist will realize that their actions are not in their own interest and that they will change their minds and move toward a mindset that is more open, more inclusive and more win-win for globalization.

He concluded, “Anti-globalization obviously will not work, and protectionism is not the way to resolve the challenges that confront us all."

The Point with Liu Xin is a 30-minute current affairs program on CGTN. It airs weekdays at 9:30 p.m. BJT (1330GMT), with rebroadcasts at 5:30 a.m. (2130GMT) and 10:30 a.m. (0230GMT).