Victor EzejaAs the trade war between the United States and China continues, the latter has said it can help the former in reviving manufacturing in the country.
The U.S.-China trade war, initiated under the Trump administration, has had significant implications for global manufacturing supply chains. China is one of the biggest U.S. trading partners.
Join our WhatsApp ChannelThe United States president, Donald Trump, imposed a 145 per cent tariff on goods imported into the country from China, saying it was part of efforts to bring back manufacturing and create more jobs in the sector. China equally retaliated imposing 125 tariff on import of U.S. goods in a tit for tat.
In an interview with China Daily on Tuesday, Victor Gao, vice-president of the Center for China and Globalization (CCG), said the U.S. should not mix up the issue of trade tariffs with the quest to revive manufacturing in the country.
In a video of the interview shared on X, Gao said China is ready to assist the U.S. in reviving manufacturing, claiming that his country has the manufacturing expertise and can equally provide capital.
He said: “We need to be very realistic, honest, and pragmatic. If we are dealing with trade tariffs, for example, let’s deal with the trade tariff. If we are dealing with the challenge of bringing manufacturing jobs back to the United States, let’s focus on the manufacturing side of the equation for the United States. “China can really help a great deal by providing capital, technical know-how, manufacturing expertise and a huge track record.”
He said China has made the greatest contribution to manufacturing output globally, claiming that the country’s “manufacturing output today is larger than the combined amount of the United States, EU and Japan output.”
“So, if the U.S. wants to recreate manufacturing jobs, China can really help,” he added.
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The U.S. Treasury Secretary, Scott Bessent, in an interview on Monday, said it was up to China to start negotiations on the tariffs to de-escalate trade tensions.
In response, China urged the U.S. to engage in dialogue based on equality, respect, and mutual benefit instead of resorting to threats and exerting pressure.
Foreign Ministry spokesman Guo Jiakun said there are no winners in a trade war or tariff war. He stated that the U.S. started the trade war and if it wants to resolve the issues, it should use dialogue and negotiation, not pressure and threats.
The trade war was initiated by the US. If the US wants to resolve the issues through dialogue and negotiation, it should stop making threats and exerting pressure, and engage in dialogue with China on the basis of equality, respect, and mutual benefit,” Guo said.
Also, in a video released on Tuesday by China’s Foreign Ministry, the country said it won’t capitulate in the ongoing trade war if the U.S. is not ready for an amicable resolution.
In the video titled “China to U.S.: Never Kneel Down,” released on YouTube with an English narrator, it cites American action against Japan’s Toshiba and France’s Alstom as what it says are examples of how the U.S. abuses its power.
Trump, who halted his latest baseline 10 per cent tariffs on most American partners for 90 days, however, increased that of China to 145 per cent, drawing condemnation from Beijing, which vowed to fight till the end.
There are concerns that prices of goods could soar in the U.S. after most businesses run out of stock. U.S. firms have warned about an impending surge in costs, leading to inflation and even empty shelves.
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In a report, AP stated that the taxes are already affecting American imports. It quoted Port Optimizer, which tracks vessels, saying that shipping containers set to arrive at the Port of Los Angeles dropped to nearly 36 per cent over the past two weeks.
Trump had in some of his interviews, stated that China wants to make a deal. He claimed things have improved and that he has had conversations with Chinese President Xi Jinping. However, Beijing has refuted the claims.
A few days back, data released by the United States Department of Agriculture revealed that China canceled 12,000 metric tons of pork orders from the United States amid the trade tensions.
China was the third-largest market for pork exports from the U.S. ,according to The Hill.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
