David Dollar: Trade war unlikely after Xi-Trump meeting

The possibility of the US starting a trade war with China is drastically reduced after the meeting between US President Donald Trump and Chinese President Xi Jinping, according to a US expert.

The presidential meeting provided a guidance for the two countries' negotiations over trade issues, even though no specific outcomes on trade were delivered during the face-to-face meeting, David Dollar, a senior fellow with the Foreign Policy and Global Economy and Development programs in the John L. Thornton China Center, said in a recent interview with the Sino-US.com.

However, China's fulfillment of its commitment to opening its market to US beef and to allowing US investment banks to operate on its territory could be seen as the good result of the presidential meeting, according to Dollar.

The US is making efforts to ask China to lower the 25 percent tariff imposed on American-made cars, while China is calling for more imports of US advanced technologies and approval of Chinese state-owned enterprises' acquisition of American technology companies. But Dollar said that it can be hardly achieved under the current political situation.

For the moment, the forces in favor of globalization is gaining an upper hand in the Trump government in the battle against the forces advocating for trade protectionism, Dollar said, adding that it does not mean that the US will stop adopting protectionist measures against China. The protectionist measures would be limited to certain areas, Dollar stressed.

Dollar analyzed that the Trump administration would open a new economic dialogue mechanism with China, which would be parallel with the strategic and economic dialogue under the presidency of Barack Obama.

In addition, Dollar said that President Trump's decision to launch air strikes on Syria sent a message that the US would take military action unilaterally, raising China's fears over the US military involvement in the North Korean issue. As a result, China may increase the economic sanctions on North Korea, Dollar said.

When it comes to solving the global security issues, the US needs China's cooperation, just like the China-US cooperation on the Iranian issue and climate change, Dollar said. Considering possible cooperation with China on the issues of Syria and North Korea, the US would not launch a trade war with China, Dollar concluded.


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