Time for a reality check for China’s wishful US trade war thinkers, Chinese professor warns
China has risen within the US dollar system but also been weakened by it, academic says
A leading Chinese finance professor has warned against overblown claims about China’s ability to take on the United States in a trade war, adding that it could be the start of a bigger rivalry lasting more than half a century.
In a graduation speech in the northern Chinese city of Changchun in Jilin province on Saturday, Li Xiao, dean of Jilin University’s school of economics, cautioned against “wishful thinking” about China’s economic strength and influence, saying the country was overreliant on the US dollar system.
“China’s rise is essentially a status rise within the dollar system,” Li said. “For four decades, we have benefited from the dollar system and we have also became the system’s main supporter as well as its risk bearer,” he said.
“Some scholars tend to interpret the conflict between the US and China within the confines of the trade war ... Some even said the US would definitely lose the trade war and China would win it. I think that’s all wishful thinking and goes against common sense.”
The address was widely shared online after being posted on the school’s social media account, and echoed other warnings about China’s international status.