Prevails over the prices against the major test in China for Xi Jinpings leadership: Nicholas Burns

Beijing, high prices in the United States on China will be a major test for President Xi Jinpings Leadership in the middle of the economic slowdown while Trump administrations take Beijing could be much more effective if the United States takes the allies, said the former American ambassador of China Nicholas Burns.

US President Donald Trump slapped 145% of the prices against Chinese exports and China retaliated with 125% samples from his imports from America.

China is the only country to have retaliated with Tit-For-Tat samples.

Halfway through his pricing campaign against a certain number of countries, Trump interrupted additional duties on other nations for 90 days while imposing more punitive withdrawals from China leaving Beijing to lead a lonely battle to defend his interests.

“The tariff war with the United States will be a major test for Xi Jinping simply because the Chinese economy has not performed well in recent years. Their growth rate of GDP is slowing down,” Burns in BBC told BBC on Friday.

They still have a major wooden mouth of the bubble of property, “which had caused a serious crisis on the real estate market, the pillar of the Chinese economy, said Burns.

They face a demographic crisis during the next decade. Capitals are fleeing, “he said, adding that direct foreign investment dropped 32% last year in China.

I don't think the Chinese government wants to have a sustained trade war. They want to obtain a trade agreement with the United States, said Burns, who was appointed by former American president Joe Biden and was an American ambassador to Beijing from 2022 at the start of this year.

He also said Trump is expected to take the American allies to make the trade war against China more efficient.

The other problem is the main error in calculating the Trump administration. We have not included on our side of the commercial battle, our main business partners, Japan and South Korea and countries as well as the United States represent more than 60% of world GDP.

So the way to effectively fight the Chinese, I have certainly found as an ambassador to Beijing is to get your allies on your side with us. Because the Chinese cannot match this. Instead, the United States has brought stratospheric prices raised on these allies which deprive us of this unique advantage, “he said, referring to the taxation of prices on a multitude of countries.

Commenting on the response of Chinas Tit-For-Tat, Burns said: it is not surprising that the Chinese would have equaled us Blow by Blow … This is what they did when I was there as ambassador for more than three and a half years.

He said it was important to remember the former American president Biden, also prices chased by Trump in the previous presidency.

The reason is that China is a major violation of international rules. The Chinese government has not protected the intellectual property rights of American companies in China, “he said.

Chinese has practiced forced technology transfer. So there is a lot of trouble in this photo that the Chinese caused. But the problem for the Trump administration is 145% of prices on Chinese products. Now the Chinese have almost equaled us, “he said.

The United States and China are the world's largest economies and if the trade war between them continues more than six months, it could actually decline the economic relationship of the two countries, “said Burns.

Total trade between China and the United States was $ 642 billion in products and services last year and China is the 3rd trading partner of the Americas after Mexico and Canada, he said.

The prices will have a deep impact on the American economy and a great impact on China around the world. We hope at the moment, the two governments will find a way to speak, “he said.

He reduced the claims that China could successfully navigate in the crisis.

It is not true that the Chinese can resist the trade war if it lasts as long as they claim it. If the trade war continues at this level of prices for six months, which would reduce the China-US relationship in a very significant way, “said Burns.

Prices will affect exporters and importers on both sides.

This will produce a crisis in the economies of both countries. This is why this is such an important problem until it can be solved, he said.

On who flashes first, he said it was a massive chicken game “on” an Olympian diplomatic scale “.

“I do not think you can ask the other side to blink your eyes and make a compromise, which is not the way it works at this level of diplomacy and politics. But what we can do is stay in touch with them and speak behind the scenes,” he said.

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