(Xinhua)14:10, June 27, 2019
SUVA, June 26 (Xinhua) — The U.S.-initiated trade war with China would not be able to make America great again, but would damage the global economy seriously, and it is in the two countries best interests to reach an agreement to end the trade war, a former Tongan diplomat said on Wednesday.
Siamelie Latu, former Tongan ambassador to China and former acting secretary of Foreign Affairs, said in an article on a local leading news website Matangi Tonga Online that the trade war, initiated by the United States, would do serious damage to the global economy as protectionist actions escalate.
Countries imposing tariffs and countries subject to tariffs would experience losses in economic welfare, while countries on the sidelines would experience collateral damage, said Latu. If tariffs remain in place, losses in economic output would be permanent, as distorted price signals would prevent the specialization that maximizes global productivity.
Latu, who is now secretary general of the Tonga China Friendship Association, said that a trade war between the two biggest economies in the world would have very serious repercussions globally. The trade war could derail the current global economic expansion and cripple American businesses that depend on business with China.
Pointing out that the U.S. trade bullying harms the world, Latu said that economic globalization is a firmly-established trend of the times, while unilateralism and protectionism are unpopular.
The trade protectionist measures taken by the United States go against the WTO rules, damage the multilateral trading system, seriously disrupt global industrial chains and supply chains, undermine market confidence, and pose a serious challenge to global economic recovery and a major threat to the trend of economic globalization, he said.
Latu added that the tariff measures imposed by the United States harm others without benefitting itself.
Since the beginning of the trade war initiated by the United States, the tariff measures have not boosted American economic growth. Instead, they have done serious harm to the U.S. economy, he said.
From his point of view, the tariff measures have significantly increased production costs for U.S. companies, which caused domestic price hikes in the United States, impacted U.S. economic growth and peoples livelihood, and led to barriers to U.S. exports to China.
Latu stressed the importance of mutually beneficial and win-win relationship between the two countries, saying that it would benefit not only the two countries but also the entire world.
In fact, in todays globalized world, the Chinese and American economies are highly integrated and together constitute an entire industrial chain. The two economies are bound in a union that is mutually beneficial and win-win in nature, he said.
China and the United States have the most at stake, and it is in their best interests to reach an agreement that addresses key issues, said the former ambassador.