Joe Biden could be biggest risk to Chinese economy next year if he puts sanctions on certain industries, says leading economist
- Former central bank adviser David Li says president-elect may continue hardline approach by targeting certain sectors
- Li also says planners must consider prospect that Donald Trump will make a comeback in four years’ time
Sanctions imposed by the incoming Biden administration that target specific Chinese industries could be one of the biggest risks to the economy next year, a leading economist has warned.
David Li Daokui, a professor at Tsinghua University and a former adviser to China’s central bank, also warned that economic planners should not rule out the possibility that Donald Trump will make a comeback in four years’ time.
He told a forum at Renmin University in Beijing on Saturday that there were signs that the president-elect might continue Trump’s hard-line approach to China.
“If you ask me what are the risks facing Chinese economy next year … Number one, will Biden introduce restrictive policies that are precisely targeted at certain China’s industries? That remains a question mark,” he told the China Macroeconomy Forum.
Li argued Barack Obama’s recently published memoir showed that the Democrats were worried about China’s rising technological prowess.
“They are concerned that China is, little-by-little, eroding America’s military, technological and financial advantages, and have talked about the necessity of restricting China’s technology to maintain US superiority,” he said.