China-US Trade War Unlikely
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There is little possibility China and the United States will become embroiled in a full-blown trade war despite trade friction between the two countries will likely rise in the months ahead, China Daily reported.
The newspaper said since US President Barack Obama announced special duties on tire imports from China in September, trade tensions between two of the world's most important economies have tightened and spread to other areas, but few believe a trade war of any kind will break out.
"There is neither sign nor reason that China and the U.S. will turn the conflicts into a war. It's not good for either party," He Weiwen, a senior expert on WTO and China-US trade relations was quoted by the newspaper as saying.
It is estimated trade remedy cases, as of last year, only account for 5 percent of the bilateral trade volume, said China Daily.
"They are a minimal part of bilateral trade and happened in a special period. Cases will decrease when the US economy turns good," He said.
In his visit to China in late October, US Secretary of Commerce Gary Locke said both countries should avoid trade protectionist measures against each other. Both would be losers if trade conflicts escalate into a trade war.
Most observers believe the US will not launch additional trade remedy cases for fear of antagonizing China, said the newspaper.
But He Weiwen warns as unemployment rate is expected to remain high next year, the US will initiate more trade protectionist cases with China being the major target.
It is expected trade issues will be a topic for discussion as Obama starts his visit to China Sunday.
(Xinhua News Agency November 15, 2009)