A trade war with China would end badly for the U.S., said China-employed economist Ding Yifan today at a seminar on trade between China and America. It would not be a good idea on the U.S.’s part to outright accuse China of manipulating its currency, or to import duties on Chinese goods, Ding said.
Ding’s warning follows the drafting of a letter by Representative Tim Ryan urging Congress to pass a law that would permit the imposition of anti-dumping duties on “injurious imports from any country that persistently undervalues its currency” — in other words, China.
In recent months, politicians have become increasingly motivated to take action on China’s currency. They see the country as keeping the yuan artificially undervalued, a move that stimulates Chinese exports at what is seen as the expense of U.S. unemployment.