Experts: Sino-US trade friction unlikely to trigger trade war ( 2003-11-26 22:27) (Xinhua)
Induced by US domestic political factors, the
recent trade friction between US and China poses a serious threat to the world
economy, experts here said.
However, they noted that there is little chance for the friction to develop
into a full-scale trade war.
Last week, the US government said it would impose new limits on China's
exports of three kinds of textile products to the U.S, and meanwhile, it said
investigation would be carried out on China 's wooden bedroom furniture under
suspected dumping charges.
On Monday, the US slapped dumping duties on color TVs imported from China.
In response, China canceled a planned trade mission to the United States to
sign contracts for soybeans and other farm produce, and China is likely to boost
tariffs on some US products.
A tit-for-tat trade war seems imminent. Nevertheless, analysts cited
America's emerging protectionism as one of the measures for the Bush
administration to reduce its soaring trade deficit and therefore gain more
support in next year's presidential election.
According to the American Dow-Jones News Service, although there are US-China
trade disputes, both sides preferred to resolve problems through negotiation
rather than intensifying them through tariffs.
US Federal Reserve Chairman Alan Greenspan acknowledged that rising trade
barriers could make America less competitive.
And Stephen Roach, chief economist and managing director of Morgan Stanley
criticized the US government, saying that such moves are actually charging extra
taxes on American consumers.
The US has begun seven anti-dumping cases against China this year, targeting
products valued at about 1.6 billion US dollars, and the Chinese government has
urged the United States to take a fair approach in tackling trade problems, said
an Chinese official with the Ministry of Commerce.
