Expert: China can turn trade crisis into opportunity

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02:34

A senior Chinese academic says Beijing can turn the China-US trade crisis into an opportunity.

The US government has been accusing China of unfair trade practices. Last month, it announced it would move forward with its proposal to put tariffs on 50 billion US dollars worth of Chinese goods. As promised, China immediately retaliated with its own duties on US imports. Since that exchange, President Trump has called for additional tariffs on 200 billion US dollars worth of Chinese goods.

Liu Chunsheng, a professor at the Central University of Finance and Economics in Beijing, said China could become stronger as a result of the trade conflict.

“Based on China’s history, China has the ability to turn crisis into opportunity," he said. "This is a very cherished opportunity for China’s opening up and reform."

China and the US would suffer, Liu said, but the former has the capacity to deal with the economic challenges being presented.

Liu Chunsheng, a professor at the Central University of Finance and Economics in Beijing. /CGTN Photo

“The US has already suffered from its own tariffs plan,” said Professor Liu, “and the negative effects will show up in the next few months or the next few years for China’s economy."

After decades of stagnation and underdevelopment, China is now the world’s second largest economy and is spearheading its own economic programs and regional institutions. It has its own investment bank, hosts regional economic summits, and is moving forward with its massive international development project, the Belt and Road Initiative.

Professor Liu says a trade war is beneficial to nobody and instead Beijing should continue to liberalize its economy.

“There is no winner in the trade war,” Professor Liu said. “China should seize the opportunity, and deeply reform its economic system.”