Editorial | China must go ahead with reforms whatever happens
- With Donald Trump set to step up the US trade war, Beijing should still carry out its pledge to give greater access to its markets and lift restrictions on foreign businesses
A dangerous escalation of the trade war is due to kick in tonight, Washington time, with a steep increase in punitive American tariffs on Chinese exports.
China has vowed to retaliate, and vice-premier and chief trade negotiator Liu He was expected in the US capital yesterday for the latest round of negotiations, cut short by a day after President Donald Trump tweeted his sudden tariffs threat last weekend. Hopes that Liu can head them off are dim.
Assuming that a degree of reason does not prevail at the eleventh hour, a worst-case scenario of no deal and an all-out trade war looms. Containing the fallout is paramount. It is not confined to bilateral relations.
China’s stimulus-driven recovery could be at risk before long, as would economic reforms critical to global ties, especially with Europe. It is therefore imperative that China and the United States keep a channel open for dialogue and that Beijing reaffirms reforms.
Analysts believe China avoided cancelling Liu’s trip altogether because such action would have been seen to have ended talks, leaving China open to blame. Showing up may be just a goodwill gesture of a willingness to negotiate, without any prospect of China bowing to US demands.
