Renowned American economist and Columbia University professor Jeffrey Sachs has expressed serious concerns over the United States' recent imposition of unilateral tariffs on China, warning that such protectionist measures are detrimental not only to the US economy but also to global economic stability.
Sachs described the US government's move to impose a 10 percent tariff on Chinese goods as \"a misguided, detrimental aspect of US statecraft.\" He cautioned that protectionist policies historically lead to economic decline, stating, \"Protectionist economies do not thrive; they lose their competitive edge.\"
Drawing parallels with past events, Sachs referenced the Smoot-Hawley Tariff Act of the 1930s: \"When the US imposed high tariffs in what is called the Smoot-Hawley tariffs, this led to a cascade of protectionism all over the world in the 1930s that was catastrophic.\" He emphasized that the consequences included \"a collapse of global trade, a collapse of peaceful relations among countries, and eventually the return to world war.\"
Sachs highlighted that the US has significantly benefited from China's rapid economic development. \"China's rapid development has been a boon for the US, fueling the growth of industries and the digital revolution,\" he noted. \"It's made a lot of people rich and a lot of industries rich in the US.\"
Addressing the domestic political factors, Sachs acknowledged that the pursuit of votes in swing states has fueled anti-trade rhetoric. However, he expressed optimism that policymakers might recognize the economic realities beneath the political surface. \"Insiders in what is otherwise politically motivated as a protectionist administration will understand the underlying economic realities a bit better than what is apparent on the surface,\" he stated.
Sachs urged other nations, particularly in Europe, to maintain open trade relations with China rather than \"blindly following the US\" into protectionism. He argued that if the US \"abandons itself from the open trade system, there's a big world beyond the US, and China will become the low-cost provider of many key technologies in the rest of the world.\"
His insights serve as a sobering reminder of the risks posed by protectionism and underscore the importance of fostering mutually beneficial economic partnerships on the global stage. As the world navigates the challenges arising from US-China tensions, Sachs' call to champion free and fair trade carries profound significance for the future of international relations and global prosperity.
Reference(s):
cgtn.com
