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To slow China’s tech advances, Trump should keep its factories addicted to cheap exports via low tariffs, economist says

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  • President Donald Trump’s approach to the United States of China trade It was to impose the prohibited high definitions. While it just gave the main technology imports to a temporary rhythm, the rest of China’s producers are still facing a 145 % tariff. But if Trump wants to slow the technological progress of China, this is the opposite of what he should do, an economist says.

The definitions that President Donald Trump revolves around the economy, the global economy on a wild journey, but China was its main goal and faced high duties prohibited.

While he just gave Main technology adaptation temporary translationThe rest of China’s producers are still facing a 145 % tariff, which means that games, clothes and furniture made there will have to find new buyers.

The White House has indicated that reducing the trade deficit of the United States and manufacturing is the most important goals. But if it wants to slow technical progress in China and ensure that the United States is dominant, the administration must follow a completely different approach, according to Keyu Jin, associate professor of economics at the London College of Economics and his book authorThe new Chinese play book. 

in The opening in Financial times On Thursday, I noticed that technological jumps often appear in times of conflict and that Trump’s trade war can ignite innovation.

Jin wrote: “Not only the definitions change commercial flows – they are redirecting resources and reshaping industrial structures,” Jin wrote. “If Trump’s goal is to reduce the technological progress of China, he will retain low definitions on the largest part of Chinese exports to the United States, which leads to the country’s imprisonment for the basic manufacturing of low accumulations. It will encourage high -tech exports to China, while making sure that progress in its advanced components.”

But instead of finding exports to our easiest way in China’s markets, they will collide with a wall. Trump’s tariff was met with similar revenge as China imposed 125 % duties on the United States.

At such levels, the opposition duties will bring Trade between the two largest economies in the world for a virtual endowment.

Jane expected that Trump’s trade war will lead China to transform more resources into high -value advanced technologies competing with American products.

“Beijing has extracted its conclusion: innovation and control of basic technology is the only sustainable defense against definitions.” “Companies with Royal Technology – Like Huawei And BYD- isolated more than customs tariffs and supply chain shocks. China imagines a new supply chain: regional production, technology and global supply chain. “

Certainly, other experts have noticed that the flooding of exports that were coming out of China was widely World trade and economies have been disrupted around the world.

Even before the last commercial war, the Biden administration continued the Chinese definitions imposed by Trump during his first administration. He also added restrictions on American technology exports like the most high -end NVIDIA chips to reduce China’s progress in an artificial intelligence, which could indicate standards in military ingenuity.

But such sanctions, only re -clarifying the demand away from American supplies, and local Chinese chip makers report record revenues and invest in research and development.

She also indicated that Dibsic in China, which shocked the technology industry earlier this year through a low -cost artificial intelligence model that was similar to American publications, was “born under restrictions.” Meanwhile, Beijing also targets optical quantum computing, low -orbit satellites, penetration in design equipment while driving in factory robots.

Since Trump’s first tariff in the first period, Chinese companies have been expanding to other markets around the world, including Africa. Jin said they have a large space for growth beyond manufacturing by providing more digital services and infrastructure.

She committed parallel with the trade blockade of Napoleon on Britain in the early nineteenth century, which argued that it prompted the British to resort to Asia, Africa and the Americas while neglecting more industrialization.

Jin warned, “The United States may repeat this error. If America makes great again its goal, Trump should not be afraid of comfortable China, and one of them should be afraid.”

This story was originally shown on Fortune.com


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2025-04-13 18:15:00

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