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China would not take radical retaliation steps in trade war with United States — expert

US President Trump has repeatedly expressed dissatisfaction with the enormous deficit in trade with China

© AP Photo/Andy Wong

HONG KONG, June 5. /TASS/. China is not inclined to take "radical retaliation steps" in response to the US-launched trade war, including possible revocation of licenses from US casinos in Macau, Chairman of the Council of Institute of New Structural Economics (Peking University) Yu Pun-hoi said in an interview with TASS.

"In my opinion, China’s strategy in the trade conflict with the United States is not trying to seek retaliation and escalation at all cost, but looking for ways to contain the conflict, mitigate the problem, the damage. This would include some sort of warning shots, so that Washington would come to its senses, rather than radical measures," the expert believes.

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"I rule out the possibility that China would refuse to renew licenses to US companies for gambling business in Macau. Although some people said that it could be done. In China, they would prefer to take other measures, such as restricting imports of unreliable US companies," he said.

Beijing also realizes that the current expansion of the trade conflict is in many respects still connected with domestic political games in the United States before the elections, and some people in the White House are not at all eager to look for ways to solve trade problems with China, the expert added.

Yu Pun-hoi also believes that trade disputes with Washington should not be viewed as a "separate war." According to him, "this is one of the components of the long-brewing contradictions between the United States and China, which accelerated with Donald Trump coming to power."

Trade war

US President Trump has repeatedly expressed dissatisfaction with the enormous deficit in trade with China. Since May 10, US duties were once again raised from 10% to 25% in respect to Chinese products for bln. Trump has also instructed to begin the process of raising duties on goods from China for another $300 bln. The American side explained its actions by the fact that Beijing shift away from the agreements reached earlier at the consultations on trade issues. Since June 1, Chinese authorities have introduced duties in respect of more than 5,000 commodity items from the United States totaling $60 bln.

At the same time, on May 17, the US Department of Commerce added Chinese telecommunications company Huawei to the blacklist due to "threat to national security."

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