Claire Buchan Parker
August 5, 2019 (CHICAGO)—President Trump is right to be fighting for more balanced trade with China. From slow movement on market opening to intellectual property rights theft and forced technology transfer, China must be held to account and called upon to act as a responsible global economy. But the focus should be on improving the situation for US companies, workers and consumers. Unfortunately, the tariffs placed on Chinese goods are now starting to bite into US economic growth and prosperity.
In response to another proposed increase in tariffs by the Administration, China has announced it will halt purchases of US agricultural products. Also, it allowed its currency to drop below the psychologically important benchmark of 7 to one dollar. Although it is only natural that the market forces resulting from an accelerating trade war and increased tariffs would put downward pressure on the Chinese currency, I encourage the Chinese government to show restraint and work to maintain a stable currency in the interests of global financial stability.
I continue to believe that there is a deal that can be achieved resulting in benefits for both countries. Hopefully, the talks planned for this month will lead to more positive results.
About The Paulson Institute:
The Paulson Institute is a non-partisan, independent “think and do tank” dedicated to fostering a US-China relationship that serves to maintain global order in a rapidly evolving world. Our focus on US-China is dictated by the reality that it is the most consequential bilateral relationship in the world. We often operate at the intersection of economics, financial markets, environmental protection, and policy advocacy, in part by promoting balanced and sustainable economic growth. Founded in 2011 by former Treasury Secretary Henry M. Paulson, Jr., the Institute is based in Chicago with offices in Washington and Beijing.