Xinhua News Agency, Washington, May 10th. The Washington Post recently published a entitled "I think the trade war with China is bad enough now? Then wait and see," the article pointed out that the tariff policy adopted by the US government against China is to "fire first, think later". The price of "decoupling" between the US and China will be economic downturn, social chaos, and even worse. The article summary is as follows:
The United States seems to have launched a trade war with China, the world's second largest economy. The two countries' total economic output accounts for nearly 45% of the world, and the total trade volume accounts for more than 20% of the world. The United States has provoked this war almost without adequate planning and careful consideration.
More than 80% and 78% of smartphones and computer monitors imported by the United States come from China. Will new suppliers be found in the United States in the next few months? Meanwhile, China imports large amounts of oil, gas, soybeans and pork from the United States, but it can be easily purchased from other countries.
Can reducing the economic ties between the two countries really reduce strategic risks? First, the "decoupling" between the two countries' economies will make the United States poorer. The Oxford Economic Research Institute predicts that the U.S. gross domestic product (GDP) may fall by 1.4 percentage points compared with the original tariffs on China, which means hundreds of billions of dollars in wealth losses each year. In addition, as companies adjust their supply chains, inflation follows; the decline in specialization leads to loss of productivity; and the damaged innovation ecosystem leads to higher opportunity costs.
Any US action will trigger a Chinese reaction. Taking technology as an example, although the US restricts China from obtaining cutting-edge chips, is this effective? In the fields of chip manufacturing and artificial intelligence, Chinese companies such as Huawei and DeepSeek seem to be able to produce near-standard technological achievements, at a much lower cost than the United States.
What would the world look like if there was little economic relationship between the United States and China? Letting the two countries intertwin economically - trade, investment and interaction - is a force that can ease conflict. Historically, sanctions, tariffs, "decoupling" and isolation have never brought prosperity.
[Editor in charge: Zhao Yang]
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