Trade-offs or trade war? China ‘could be forced to compromise’ with the US
Big concessions now could lead to more demands from Washington down the track, Chinese analyst says
China might be forced to compromise into opening its markets or ramping up imports of American products as it tries to defuse rising trade tensions with the United States, analysts said.
Another option may be to cut import tariffs on US products entering China, a move that could go some way to meeting US demands to narrow the trade gap between the two countries.
Trade tensions between Beijing and Washington have soared in recent weeks, with both sides proposing tariffs on imports.
On Thursday, China went a step further, raising a formal complaint with the World Trade Organisation over the US’ decision to slap duties on Chinese steel and aluminium products.
But US and Chinese officials are still trying to play down the possibility of a full-scale trade war.
Larry Kudlow, the White House’s National Economic Council director, said on Wednesday that both countries still had time to work out their differences.