China's Ambassador Warns Against Tariff Hike, Citing Economic Ties and Shared Aspirations

China's Ambassador to the US Warns Against Tariff Hike

Chinese Ambassador to the United States Xie Feng has cautioned against the counterproductive nature of imposing tariffs on Chinese imports, citing the extensive economic ties between the two nations. He highlighted the significant two-way trade exceeding $680 billion and the presence of 73,000 American companies invested in China.

Xie emphasized the shared interests and vast potential for cooperation between the two countries, warning that decoupling and disrupting supply chains would be detrimental to both economies. He stressed that trade wars inflict greater harm on the initiator than others.

The ambassador's remarks came in response to the US President's announcement of additional tariffs on imports from China, citing the fentanyl issue. China's Foreign Ministry condemned the move as a pretext for exerting pressure and blackmailing China, highlighting the progress made in China-US counternarcotics cooperation.

Xie emphasized China's early and comprehensive efforts to address the fentanyl issue, becoming the first country to schedule fentanyl-related substances as a whole class in 2019. He underscored the shared aspirations of the Chinese and American people for a better life and the need for both sides to prioritize the mutually beneficial nature of their relationship.

Researchers have warned that the economic impact of the threatened tariffs will ultimately fall on American consumers, contributing to inflation. Studies suggest that the additional tariffs could increase the prices of everyday goods by 0.8% to 1.6%.

The prospect of new tariffs has drawn criticism, with former Treasury Secretary Lawrence Summers deeming it a self-inflicted wound to the American economy. He anticipates higher inflation in the coming months as a consequence of the tariff hike.