Nobody wins a race to the bottom

Over the last 40 years through the efforts of both governments, many organizations, and individuals, in business, academia, media and the arts, China and the US have gone from little mutual understanding and appreciation, to greater interaction in every sphere of life. This interaction has brought great benefit to both countries and their peoples. However, this relationship is complex. It is not surprising there would be setbacks and misunderstandings along the way. During this time I have witnessed great progress and many instances where dialogue and prolonged efforts have resulted in resolution of difficult problems.

As to trade issues, bilateral mechanisms such as the JCCT, Strategic Economic Dialogue and multilateral mechanisms such as the WTO have helped resolve issues when the going got tough in the past. The issues to be resolved are almost always quite complex, and don't lend themselves to resolution by unstudied pronouncements by early morning Twitter missives.

When there are not orderly mechanisms to resolve issues, the people of both countries will be hurt — just as US farmers and purveyors of American specialty goods such as Kentucky bourbon are hurting now. In my own field, where US medical equipment has traditionally dominated the market, Chinese hospitals are looking at substituting their purchases with products from Europe and domestic Chinese products rather than paying the extra duties. These alternatives are of increasingly good quality. But Chinese patients might not get the benefit of the latest, or their doctors first choice of technologies, because tariffs have made them prohibitively expensive.

American consumers may also soon see their cost of living increase, because Chinese made goods will become more expensive.

There are, of course, still many irregularities in the trade and investment relationship that need to be resolved. For example, in the field of healthcare the Chinese government has recognized the importance of private participation in order to bring more options to Chinese patients.

Foreign investment in the field will not only bring capital, but also management and medical expertise that could help build capacity where it is needed. Despite this appreciation of the benefits of foreign participation, healthcare for now remains on the "Restricted Investment List" so the market is not fully opened, even to qualified foreign investors.

Resolving these market entry issues, both through policy and a quick follow-on with implementation regulations, would benefit potential investors as well as Chinese patients. Having more access to international healthcare at home would give options to the tens of thousands of Chinese patients who go abroad for care every year.

A race to the bottom in a tariff war would hurt both countries and their people, and not solve the problems at hand.

The author is a director of the US-China Business Council, a past member of the board of governors of the American Chamber of Commerce in China and CEO of United Family Healthcare.

The opinions expressed here are those of the writer and do not necessarily represent the views of China Daily and China Daily website.