Huang Yiping: Trump-Initiated Uncertainty a Scourge

Sep 12-2019   

Tariff hikes can awfully impact the economy, yet Trump-initiated uncertainty is even worse, said Prof. Huang Yiping in a recent interview with CDF Insight, affiliated with the upcoming China Development Forum.

Together with Europe, Japan and other developing countries, China should endeavor to maintain an open trade and investment environment. At the same time, Prof. Huang advised China to act cautiously, considering that it still lags behind developed countries in openness and marketization and is yet to be a leader of globalization. Top on the priority list is to keep growing the economy, foster innovation and achieve sustainable development.

Judging from the situations in the US, trade war might become a normalized phenomenon, adding to the downward pressures on the Chinese economy. A Cold-War-styled confrontation can be ruled out, but partial de-coupling might happen in areas of strategic and national security importance. Even so, there’s no need to get too gloomy about the prospect of the Chinese economy.

Trump’s presidency has been a misfortune for the world economy by engendering uncertainty and breaching decades-old rule-based mechanisms. Free trade and free investment, the major goals of WTO, APEC and other organizations, are in jeopardy. The American economy suffers, too. If the US finds itself tumbling down from world hegemony in the future, Trump’s presidency might be the trigger.