arthurkby Fantake via Flickr

After the US announced a levy on Chinese tires, many observers feared a possible trade war between two of the world’s largest economies. According to Dragonomics director Arthur Kroeber from Beijing in Finfacts, a repeat of the 1930s trade wars is highly unlikely.
Finfacts:

Beijing has built a reputation for rapid but controlled retaliation during trade disputes. One Washington trade lawyer said: “China always responds, so I don’t think this escalates. It just repeats each time the US does something.”

Arthur Kroeber of Dragonomics, a Beijing-based economic consultancy, said: “Chinese tit-for-tat measures are unlikely to wreak significant economic damage . . . We don’t believe that the case marks the start of Depression-type trade wars.”

The products that Beijing is threatening to target – while denying that it is retaliating for the tyre tariffs – are politically important in the US.

Commercial
Arthur Kroeber is a speaker at the China Speakers Bureau. When you need him at your meeting or conference, do get in touch. 

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