US tariffs will do more damage to ties

Editor's Note: On Aug 1, the day after the 12th round of China-US trade talks concluded on a "constructive" note, according to US negotiators, the United States threatened to slap 10 percent additional duties on another $300 billion of Chinese goods starting Sept 1. And on Tuesday the US designated China as a currency manipulator and China announced to partly suspend purchase of US farm produce. Why has the US gone back on its words again? And is there a threat of a breakdown in the talks? Two experts share their views on the issue with China Daily's Liu Jianna. Excerpts follow:

Efforts needed to rescue bilateral ties

That Washington has gone back on the consensus reached by the two heads of state on the sidelines of the G20 Summit in Osaka in June suggests the US leader believes the new 10 percent tariffs on another $300 billion of Chinese-made goods will earn him more votes in the 2020 presidential election.

Deft at using public diplomacy and discourse through his Twitter account, the US leader knows how to draw national and global attention to a particular issue in order to fulfill his own political agenda.

Yet his move, which is a continuation of his "maximum pressure" strategy, is expected to do more damage than good to the US, not least because China will never submit to the US' demands.

More important, the US administration is both unreasonable and arrogant in its dealing with other countries.

The US leader's reckless pursuit of personal gain and glory has invited opposition inside the White House, too, as both US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin are reportedly against imposing new tariffs on Chinese goods.

The talks at the current stage are more political than commercial in nature since the two sides' differences over trade and intellectual property rights mask the fundamental change in bilateral relations and conflicts on various fronts.

Contentious issues in Sino-US relations cannot be easily resolved. And China knows well that concessions on trade would not necessarily ease tensions, especially on issues of core interest such as Taiwan and the South China Sea.

But despite the dilemma, the termination of the talks is unlikely as the trade rules and new interaction framework between China and the US will play an important role in helping reform the World Trade Organization and improve the global trade mechanism.

On Monday, the yuan went beyond 7 against the US dollar for the first time since 2010, prompting some to argue that China has manipulated the exchange rate to offset the impact of the new US tariffs.

Such arguments are baseless, as Washington would likely wage a financial war against Beijing if the yuan devalues by more than 8 percent, jeopardizing bilateral relations.

Since China and the US are locked in conflicts on multiple fronts, it is essential to take damage control measures to prevent bilateral relations from worsening further, because that would send shockwaves across the world and destabilize the global economy.

Zhu Feng, director of the Institute of International Studies, Nanjing University

Populist move to garner support for US leader

The US leader has threatened to levy new tariffs on Chinese goods for the following reasons: to garner more votes in the 2020 presidential election by projecting to act tough against China; to "punish" China ostensibly for not importing soybeans from the US as quickly and substantially as the White House expected it to; and for being unaware of the changes in China's negotiation strategy and style.

That the US has suddenly labeled China as a currency manipulator shows Washington's resolve to further pressure China. Which will add more uncertainties to both economies as well as the world economy. And the US leader will be forced to strike a balance between his craving for re-election and assuage Wall Street.

After a year of back and forth, both parties seem to be prepared for the worst-case scenario.

Notably, China is hearing more hawkish voices, even those calling for decoupling the US and Chinese economies.

So instead of looking for external mediators to help resolve their disputes, the two sides have to find an amiable way to settle their differences.

Chen Fengying, a senior researcher in world economy at the China Institutes of Contemporary International Relations

The views don't necessarily represent those of China Daily.