US Officials: US-China Trade Fightis Damaging the Economy
Commerce Minister Wilbur Ross said on the 7th that US trade tariffs are hurting the Chinese economy and Beijing’s ability to create jobs to avoid social unrest.
In an interview with CNBC’s “Squawk Box” program, Ross said that China’s economic slowdown is “a big problem because they need to create millions of jobs to curb social unrest from small villages.” And think that the Chinese workers who went to the city to find a job did not find a job and went home. “This has created a real social problem. This is a group of very dissatisfied people.”
He also pointed out that China is faced with the need to face tariffs or a “dual decision” to reach an agreement. The US exports to China are much lower than China’s exports to the United States.
Ross also said that China is understanding the degree of dependence on the United States and that companies are moving manufacturing out of China, but not all have come to the United States. He also acknowledged that some production lines have been transferred to other Asian countries.
As for the US-China trade negotiations that debuted in Beijing on the 7th, Ross said that the negotiations were conducted at an “appropriate level.” The size of the US delegation was large because of the many problems that need to be resolved, including final implementation and compliance.
US President Trump also said on the 6th that he is optimistic about the negotiations, in part because he believes that the motivation for mainland China to reach an agreement is the economic slowdown.
He told reporters at the White House: “I think China wants to be resolved. Their economic situation is not good. I think this gives them a lot of negotiating power,” and said that negotiations in China will go smoothly.