On June 6, 2018, President Sang Baichuan of the Chinese Academy of Sciences accepted an exclusive interview with China Singapore Jingwei client to deeply understand China's further opening up.
Reporter: the United States announced to impose steel and aluminum tariffs on several allies, which led to accusations from many countries. Where will the US trade policy go and how will it end in the future?
Sang Baichuan: in March this year, the United States announced to impose tariffs on imported steel and aluminum products on the grounds of maintaining national security, and Canada, the European Union and Mexico were temporarily exempted. However, due to the failure to reach an agreement, the United States has imposed 25% and 10% tariffs on steel and aluminum products of the three economies from June 1. The tariff measures have aroused accusations from Britain, France, Germany and other countries that the United States "betrayed" its allies and imposed steel and aluminum tariffs as "unacceptable" and "dangerous". The reason for attacking political allies is still trump's theory of economic damage at work. "Trump believes that the economic globalization of the United States since World War II is a failure," Sang said. According to his calculation, after World War II, the United States had a serious deficit in its balance of payments and had already gone bankrupt on this road. Therefore, it was necessary to take the road of "America first". However, the so-called view that the United States is damaged in economic globalization is not recognized by mainstream scholars. The mainstream scholars in most countries in the world basically believe that the United States is in the leading position in the economic globalization after World War II and is one of the countries that benefit most.
Reporter: The United States has benefited a lot, but it is still dissatisfied. Is the underlying reason behind the uneven distribution of interests in the United States?
Sang Baichuan: in the process of economic globalization, large multinational corporations and financial giants in the United States have seized huge economic benefits and played an important role in the world economic arena. These groups constitute the middle-class and above income groups in the United States. At the same time, the globalization of production has led to the transfer of American manufacturing industry to all parts of the world, and the hollowing out of manufacturing industry has become more obvious. The manufacturing workers are facing the situation of slow wage growth and relatively difficult employment, and the middle and lower classes are the main vote positions of trump during the election campaign. It is not difficult to understand why trump imposed steel and aluminum tariffs on many countries at the same time.
Reporter: what's your opinion of "allies"?
Sang Baichuan: the introduction of more and more trade protection policies shows that the trump government has a tendency to go against globalization. The "U.S. priority" policy is embodied in the trump administration's policy. Under this concept, the past political allies or economic partners of the United States have lost their value. It can not only engage in trade friction with China, but also fight trade wars with the EU, Canada, Japan and South Korea. As long as there is a trade deficit or is damaged in economic and trade cooperation, the United States can impose sanctions on any country. Under the trade war, the United States has no partners or allies.
Reporter: what is the goal of the United States to achieve when it "fires" at many countries at the same time? What are the new international trade rules it pursues?
Sang Baichuan: the U.S. government is also very confused about this goal and has no clear direction. Its previous emphasis on establishing high-standard trade and investment liberalization and facilitation rules is also selective. "TPP is regarded as the representative of high standard trade rules, but the United States has withdrawn itself. It chooses trade rules and more chooses what can play its own advantages, rather than simply seeking high standards. It is very contradictory to expand the opening-up of advantageous industries and strengthen the protection of weak industries. It is very difficult for the United States to achieve the expected goals.
Finally, San Baichuan summarized that the United States initiated trade friction with many countries. As far as China and the United States concerned, the two countries held consultations on economic and trade issues from June 2 to 3. The two sides have made good communication in many fields such as agriculture and energy, and made positive and concrete progress. The details need to be confirmed by both sides. Meanwhile, China actively expands its opening-up and increases its import of American products, which can not only improve the competition level of relevant industries, but also meet the domestic demand for high-quality products, which is beneficial to both sides.
