“China does not want to have a fight,” said Xie, during an interview on BNN’s Weekly with Andrew McCreath. “A fight would be bad for both sides, and I think the Trump administration would recognize that.”Right now, the most important policy decisions for Chinese economy are being made in Washington and at the Marriner S. Eccles Building. China had a chance to reform on its own terms before the political situation changed. The window closed, and negative social mood and global economic trends are still working against China. The United States, and the success of its domestic reforms, is now China's best hope.
“China could pick on some American companies that have big sales in China like General Motors and Apple,” said Xie. “So, China has some leverage, but we shouldn’t expect the situation to deteriorate to that extent,” he said.
In fact, Xie, believes Chinese cooperation with the U.S. is not only likely, but may be just what the Chinese economy needs. Xie says China is still functioning like a developing economy, which has led to distortions.
“The Trump administration is demanding symmetry,” he said. “I think that’s not a bad thing for China. China should become a developed economy. What a foreign investor can do in China should be the same as a Chinese company in another country. I think this is a very reasonable demand.”
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