By Jeff Ferry
Trump's critics
warn that tariffs will harm workers and the U.S. economy, but China's economic
history suggests otherwise.
As
President Donald Trump imposes tariffs on Chinese goods, opponents warn that
trade sanctions will boomerang back and hurt the U.S. economy. But these same
critics overlook several key lessons from recent global trade history. And what
they ignore is that China’s own meteoric rise was driven by a staunchly
nationalist trade strategy.
Some
brief history: For the past 25 years, China has implemented every pillar of a
protectionist trade agenda. Starting in 1994, Beijing deliberately undervalued
its currency against the dollar to make Chinese exports cheaper in the U.S.
market. It raised tariffs on a wide range of U.S. goods, including everything
from consumer products to automobiles. It levied a value-added tax that
encouraged its manufacturers to target export markets. It funneled hundreds of billions
of dollars in subsidies to key industrial sectors. And it mandated the transfer
of proprietary technologies to “partner” companies before allowing U.S.
companies access to its consumer market. [more...]
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