China should sever ties with the US economy, warn Chinese economist

Beijing: A Chinese economist and analyst, has made a dramatic statement saying that it was possible to sever the economic and trade ties, between the two leading economies of the world, the United States and China. The Chinese economist has drawn the world’s attention with the statement, just as the trade war US President Donald Trump had initiated, is nearing its completion of one year. While the Chinese economist is speaking of severing ties, the trade talks have been reinitiated between the United States and China.

Senior Chinese economist Li Xiangyang directly indicated a break-up from the US saying, ‘The ultimate objective of the United States is to stop the rising Chinese influence. It is a question of life and death for the United States. The United States may look at the severing of the economic and trade ties, as an effort to strategically blackmail China. Also, it can prove helpful in stopping China from becoming more powerful.’ He also claimed that it was theoretically possible for China to sever economic ties with the US.

Li Xiangyang is the director of ‘National Institute of International Strategy’ (NIIS), known as the foremost think tank in China. The think tank is a part of the Chinese government undertaking, the ‘Chinese Academy of Social Sciences’. While addressing an event at the Renmin University of China, Li clarified that the severing of the ties between the United States and China would be the last resort and the worst situation, while talking about the US-China trade war.

Li Xiangyang said that currently, the Chinese position is the trade war is weak and predicted that the Chinese government might be forced to allow certain concessions to the United States. However, Li pointed out that if the Chinese government is not willing to concede concessions, the economic ties between the two countries could sever. ‘The United States may make efforts to break the Chinese ties with other countries in the world, through tariffs and other means. Instead, if China severed ties with only the United States, it will be able to maintain its relations with other countries,’ Li Xiangyang advised.

Liu Qing, professor of economics at the Renmin University, endorsed Li Xiangyang’s views. Nevertheless, Qing pointed out that the ties with the United States should not be severed, as the other countries in the world would take advantage of the situation. Last month, Chinese President Xi Jinping also had clarified that the US-China ties could not be severed while addressing an event during his Russia visit. What’s more, the Chinese Foreign Ministry had lashed out, saying that speaking of severing economic ties with the US indicated a dangerous and irresponsible behaviour.

US President initiated the trade war in July, last year, by imposing tariffs on Chinese goods. Since then, the United States has imposed tariffs on Chinese goods worth $250 billion and has threatened to impose additional ones on the entire range of Chinese imports. In retaliation to the US move, China has also imposed tariffs on US goods worth $110 billion. On the sidelines of the developments, Presidents of both countries have decided to reinitiate the trade negotiations during the G-20 conference held in Japan a few days ago.