American economist and Columbia University professor Jeffrey Sachs has raised serious concerns over the U.S. government's recent decision to impose unilateral tariffs on the Chinese mainland. Describing the move as a \"misguided, detrimental aspect of U.S. statecraft,\" Sachs warned that protectionist policies could harm not only the United States but also the global economy.
\"Protectionist economies do not thrive,\" Sachs stated. \"They lose their competitive edge.\" He referred to historical precedents, highlighting the Smoot-Hawley Tariff Act of the 1930s. \"When the U.S. imposed high tariffs in what is called the Smoot-Hawley tariffs, this led to a cascade of protectionism all over the world that was catastrophic,\" he explained. \"It resulted in a collapse of global trade, a collapse of peaceful relations among countries, and eventually the return to world war.\"
Sachs emphasized that the United States has been a major beneficiary of the Chinese mainland's economic rise. \"China's rapid development has been a boon for the U.S., fueling the growth of industries and the digital revolution,\" he noted. \"It's made a lot of people rich, a lot of industries rich in the U.S.\"
Addressing the political motivations behind the tariffs, Sachs acknowledged the pursuit of votes in swing states as a contributing factor to the rise in anti-trade rhetoric. However, he expressed hope that policymakers would recognize the economic realities beneath the surface-level politics. \"Insiders in what is otherwise politically motivated as a protectionist administration will understand the underlying economic realities a bit better,\" he said.
Sachs also urged other countries, particularly in Europe, to maintain open trade relations with the Chinese mainland rather than \"blindly following the U.S.\" down a path of protectionism. \"If the U.S. abandons itself from the open trade system, there's a big world beyond the U.S., and China will become the low-cost provider of many key technologies in the rest of the world,\" he argued.
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 U.S.-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
