US President Donald Trump announced imposing tariffs on 60 billion US dollars worth of goods imported from China, mostly covering machinery, electronics, and telecommunications. Why target those industries? Let's get some analysis from Chinese experts.
Let's start from the machinery and electronics industry, which is the largest part of goods that China exports to the US. According to the China Machinery Industry Federation, China is a big client for the US.
WANG RUIXIANG CHINA MACHINERY INDUSTRY FEDERATION "In 2017, the total import and export volume of all machinery and electronic products was 303 billion US dollars, of which the products imported from the US reached 36.6 billion dollars. That means that the Chinese market is not unimportant to the US."
The US is the birthplace of telecommunication technology. However, in the 4G era, China's technology standard occupies a critical position in the world. With the advent of 5G, China will hold more powerful influence in this field.
PROFESSOR ZENG JIANQIU BEIJING UNIVERSITY OF POSTS AND TELECOMMUNICATIONS "China has more than 1.4 billion mobile phone users. The market size is several times that of the United States. If there is a trade war, the US will lose the Chinese market and its losses will be greater than China's losses."
China's textile exports to the US accounted for 36 percent of the US textile market, and solves consumption issues facing low-income households in the US.
ZHAO PING CHINA COUNCIL FOR THE PROMOTION OF INTERNATIONAL TRADE "The goal of Trump to launch a trade war is to save employment so that the low-income group will have more opportunities and keep their level of income. That's from the perspective of income, but if we check from the perspective of expenditure, the expenditure will increase substantially. That will hit the low and middle-income classes of the US. Therefore, Trump will find the trade war launched by him will inevitably bring a counterproductive result."
Experts also said continuing opening up and innovation investment is the best way for China to deal with penalty tariffs from the US.
CHEN YUBO TSINGHUA UNIV. SCHOOL OF ECONOMICS AND MANAGEMENT "The US now wants to bring the high-end manufacturing industry back to its soil. China's advanced manufacturing will be very competitive to challenge the US manufacturing industry."