Trade row with US could push China to ‘consider new round of systemic reform’
But Chinese government adviser says making big changes could be difficult, and it must avoid getting ‘into a group fight’ with other developed countries
With the threat of a trade war hanging over China and the United States, Beijing could be pushed to review its industrial and economic policies and consider a new round of reform and opening up, according to a Chinese government adviser involved in previous trade talks between the two sides.
Lu Feng, an economics professor at Peking University who took part in the precursor to the comprehensive economic dialogue with Washington that has been stalled since April last year, made the remarks ahead of a top Chinese official’s trip to the US for more trade talks aimed at easing tensions between the world’s two biggest economies.
China took a tough stance during talks with the visiting US delegation in Beijing last week, saying it would not compromise or give up on its plan for an industrial upgrade into advanced technologies, which it considers to be in the nation’s core interests, and that it would not agree to US President Donald Trump’s demand to lower the trade deficit by US$200 billion by 2020.
With Vice-Premier Liu He expected to visit Washington next week to continue the negotiations, Lu, who is also an adviser to the finance ministry, said it was time China reconsidered its economic strategy.