Stephen Roach questions Biden’s decision to maintain Trump’s Chinese policy

Leading economist Stephen Roach said he found it “really curious” that US President Joe Biden left much of his predecessor’s policies on China in place.

Roach, a senior researcher at Yale University, said Biden had retained the “seriously flawed” Phase 1 trade deal between the United States and China and tariffs on China – but reversed many other policies adopted by former President Donald Trump.

“Why did he choose the China-Trump policy as a policy worth supporting, when he literally tried to erase the list of all the other potential Trump policies he has inherited? is an important question to be answered, ”Roach told CNBC’s“ Squawk Box Asia ”Thursday.

During Trump’s tenure, the United States and China were engaged in a trade war that threatened to derail the global economy after both sides imposed retaliatory tariffs on each other’s products. The phase one trade deal ended the trade struggle, but did not reverse these high tariffs.

Intensification of US-Chinese tensions

US-China relations got off to a rocky start under the Biden administration.

Last month the two countries The first high-level meeting began with an exchange of insults, and the United States – along with some of its Western allies – imposed sanctions on Chinese officials and entities for human rights violations in the Xinjiang region.

Beijing has retaliated against the United States and its allies with its own sanctions.

Roach, who is a former president of Morgan Stanley Asia, said he was “very concerned” about escalating US-Chinese rhetoric.

“The situation is going from bad to worse and it is not necessary,” he said. “We need, I think, a more balanced approach on the American side as well as the Chinese side to get back to the areas we have in common.”

READ  China has a good chance of doubling its GDP by 2035, says Bank of America

Leave a Reply

Your email address will not be published. Required fields are marked *