By Jumana Al Tamimi
Associate Editor
Beijing: China is “not afraid of the trade war launched by America,” which will not benefit anybody, a prominent Chinese economist has said.
The Chinese economy, which is the second largest in the world, will be able to absorb any economic hit caused by the American tariffs imposed on Chinese products earlier this month, said Ding Long, Deputy Dean of the School of Foreign Studies at the University of International Business and Economics, which is considered as a think tank for the Chinese Ministry of Commerce.
“First, I reject these practices, and China does the same,” Long said, speaking to a group of media representatives visiting his office in Beijing. “Second, if the US starts launching a trade war, China won’t be afraid.”
“The best scenario is to avoid [trade] war and return to the normal track of negotiations and dialogue to solve problems,” Long said.
Earlier this month, Washington imposed US$50 billion (Dh183.5 billion) in tariffs on Chinese goods. Beijing responded by imposing an equal value of tariffs on US goods, including vehicles and agricultural products.
Although Chinese consumer products are expected to be the hardest hit by the US tariffs that went into effect on Friday, the impact is still “controllable” and the Chinese goods will eventually reach American consumers, who would find it difficult to find an alternative, he said.
“The Chinese market is an enormous market. And though the American tariffs are huge, they are not that big when compared with the size of the Chinese economy,” he said.
The Chinese economy makes up about 15 per cent of the world economy, said Long, explaining that China has other trade partners, such as the Arab countries.
Commenting on Beijing’s efforts to make its national currency an international trade currency, Chinese economist Ding Long said, “Yes, China is aiming to make its currency a currency that is in circulation internationally, but according to steps.”
Asked whether, there will be a common currency for South and East Asia region, Long replied “I don’t think there is a plan for a common currency, and this is very difficult. The Euro experience gave a very hard lesson to many countries”.
