container ship leaves Qingdao Port, Shandong province. [YU FANGPING/FOR CHINA DAILY]
The United States' new tariff push is likely to backfire by accelerating the de-dollarization trend and potentially prompting sell-offs of US Treasuries by major foreign debt holders, leading economists and currency experts said.
"With the abuse of tariff measures, the US is changing itself from a 'maker and defender' of international rules to a 'destroyer and coercer'," Zhao Zhongxiu, president of the University of International Business and Economics in Beijing, said in an exclusive interview with China Daily.
The US' "reciprocal tariffs", which were announced on Wednesday and include a 10 percent "minimum baseline tariff" and higher rates on certain trading partners, are expected to deal a heavy blow to the multilateral trade system and global commercial practices, while leading to greater economic isolation of the US, Zhao said.
All of this will erode US credibility, further dampen the world's confidence in the dollar and push more countries to settle trade in alternative currencies, said Zhao, a professor of international economics.
Furthermore, some trade partners of the US may see reduced dollar income as exports to the US drop, and they may have to sell US Treasuries to obtain the dollar liquidity needed for international payments, Zhao said.
For China, selling US Treasuries could even be considered a possible countermeasure, if necessary, he added.
As of the end of January, foreign holdings of US Treasury securities stood at $8.53 trillion, with Japan and China being the top two holders at $1.08 trillion and $760.8 billion, respectively, according to the US Department of the Treasury.
The Chinese government will continue to take resolute measures to safeguard its sovereignty, security and development interests, according to a statement released by Xinhua News Agency on Saturday on China's position on opposing US abuse of tariffs.
"We don't make trouble, but we have no fear of trouble," the statement said, adding that the US tariff push is sacrificing the legitimate interests of countries worldwide to serve the US' own hegemonic agenda.
As severe turbulence is set to unfold in global trade, the UIBE president said that China's commitment to fostering a more open, stable market environment and creating more opportunities for mutual benefit will be crucial in avoiding a drastic global economic recession.
Following the US tariff announcement, Stephane Dujarric, spokesman for the secretary-general of the United Nations, expressed concern over the "rise in economic protectionism" and its impact on the global economy.
Guan Tao, global chief economist at investment bank BOCI China, told China Daily that the "reciprocal tariffs" may increase the risk of a deep global recession, drawing parallels to the 1930 Smoot-Hawley Tariff Act, which triggered retaliatory measures, collapsed global trade and deepened the Great Depression.
The recession fears have affected the greenback, as anticipation of US interest rate cuts to counter slower growth weakened the US dollar index, which gauges the greenback's value relative to a basket of currencies, to 102.85 as of Friday's close, down 5.13 percent since the beginning of the year, according to market tracker Wind Info.
In the long run, the US' "reciprocal tariffs" are bound to undermine its own currency's global role, said Guan, who is also former head of the Balance of Payments Department at the State Administration of Foreign Exchange.
"To supply global dollar liquidity, the US must run trade deficits. As Washington seeks to reduce deficits through tariffs, global dollar liquidity will tighten, weakening the dollar's international standing," Guan said.
Jeffrey Sachs, director of the Center for Sustainable Development at Columbia University, called for Washington to aim for a world in which prosperity is widely shared, rather than one in which only the US thrives while others remain poor.
Chen Wenling, former chief economist at the China Center for International Economic Exchanges, said that China's vast economic scale will serve as a strong buffer against external pressures, especially as the country prioritizes domestic demand to build a more stable growth model that is less exposed to global trade volatility.
人社部：整治虚假职业技能培训 人社部近日发布通知，要求规范培训机构办学，严禁以招生费等名义直接或变相买卖符合补贴条件的生源，以联合办学、培训合作等名义违规转包政府补贴的培训项目，与参训人员串通提供虚假信息 预约“手慢无”！各地春节文旅成绩单亮眼 中新网北京2月19日电(张钰惠)18日，文旅部发布数据显示，春节假期8天全国国内旅游出游4.74亿人次，同比增长34.3%，按可比口径较2019年同期增长19.0%；国内游客出游总花费6326.87 八部影片半数撤档 春节档为何出现罕见“撤档潮” 据猫眼专业版数据，截至昨日17时，2024春节档总票房破80亿，总人次1.62亿，总场次383.6万，全面刷新中国影史春节档纪录。然而，几家欢乐几家愁，今年春节档冷热不均，出现了罕 哈尔滨冰雪大世界日前正式闭园。暂别冬日火爆“出圈”的“尔滨”，东北正迎来全面振兴的春天。从全面振兴的视角研究和探讨“尔滨现象”，具有特殊意义。这是因为，全面振兴的关键在于产业转型发展 mRNA巨头莫德纳上季度净利暴跌85%，流感+新冠组合疫苗最快明年上市 新冠疫苗依然在影响mRNA巨头公司莫德纳的业绩，但该公司正在寻找其他增长点。 当地时间2月22日，美国疫苗公司莫德纳(Moderna，MRNA)公布2023年第 日本两大航司近百名员工考试作弊 中新网2月23日电 综合日媒报道，日本两大航空公司全日空和日本航空近日均承认，旗下子公司共有近百员工在机场驾驶资格考试中作弊。 据朝日新闻、读卖新闻和日本放送协会等报道 。本文链接：Abuse of tariff measures likely to backfirehttp://www.sushuapos.com/show-5-52779-0.html
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