USA-Tariffs/Analysis

Trump's deficit calculation does not accurately reflect US-China trade relationship: US expert

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Los Angeles, USA - March 23, 2018 (CGTN - No access Chinese mainland)
1. Brian Peck, director of Center for Transnational Law and Business at USC Gould School of Law, speaking with reporter
2. SOUNDBITE (English) Brian Peck, director, Center for Transnational Law and Business, USC Gould School of Law:
"And the U.S., with most trading partners including China, has a trade surplus in services. So the deficit that the administration refers to is simply only for trade in goods. So it's not an accurate reflection of the true trade relationship between China and the United States, or the U.S. and its other trading partners."

FILE: Washington D.C., USA - Date Unknown (CGTN - No access Chinese mainland)
3. Various of White House

Los Angeles, USA - March 23, 2018 (CGTN - No access Chinese mainland)
4. SOUNDBITE (English) Brian Peck, director, Center for Transnational Law and Business, USC Gould School of Law:
"There are major U.S. manufacturers, retailers like Amazon and Walmart and others, that depend a lot on imports from China, whether it's for manufacturing purposes, whether it's to sell consumer goods. And they are concerned, because this will have a major impact on the economy. And not only on raising the cost of goods, either for production or for consumers in the U.S., but indeed, if a trade war were to ensue, or to start, as we know China has already threatened to retaliate against certain types of U.S. products."

FILE: China - Date Unknown (CCTV - No access Chinese mainland)
5. Various of production line at aluminum plant
6. Various of employees working in factory

Los Angeles, USA - March 23, 2018 (CGTN - No access Chinese mainland)
7. SOUNDBITE (English) Brian Peck, director, Center for Transnational Law and Business, USC Gould School of Law:
"Now that if the U.S. indeed, or the Trump administration in particular, uses 301 to finalize the tariffs, China has a very solid, very strong case in the WTO. And I would encourage China to pursue that. If I can make one other point I think that's important here is that the U.S. and China have become leaders in the global economy, and they both have benefited greatly from the WTO and the multilateral system. I think what's really important here is that, as leaders, yes, there are disputes, but they should utilize the WTO system, the rule of law, the multilateral trading system as a way to resolve those."

FILE: Beijing, China - Date Unknown (CCTV - No access Chinese mainland)
8. Tian'anmen Square
9. Chinese national flag

Storyline


The Trump administration adopted an inaccurate statistical method of assessing U.S.-China trade, which was used to justify the imposition of tariffs on Chinese imports, said Brian Peck, director of the Center for Transnational Law and Business at the USC Gould School of Law, on Friday.

Peck made the remarks during an exclusive interview with China Global Television Network (CGTN) one day after U.S. President Donald Trump signed a memorandum that could impose tariffs on up to 60 billion U.S. dollars of imports from China and restrict Chinese investments in the United States.

He said that the United States magnifies its trade deficit with China, as the calculation used by the administration excluded the U.S. surplus in service trade with China, which was worth 38 billion U.S. dollars in 2016. Moreover, trade in services actually represents over 70 percent of the U.S. GDP and the vast majority of the country's employment.

"And the U.S., with most trading partners including China, has a trade surplus in services. So the deficit that the administration refers to is simply only for trade in goods. So it's not an accurate reflection of the true trade relationship between China and the United States, or the U.S. and its other trading partners," said Peck.

Peck warned that Trump's tariffs on China may backfire and undercut the U.S. trade system, as well as lead to China's retaliation and the disruption of global trade.

"There are major U.S. manufacturers, retailers like Amazon and Walmart and others, that depend a lot on imports from China, whether it's for manufacturing purposes, whether it's to sell consumer goods. And they are concerned, because this will have a major impact on the economy. And not only on raising the cost of goods, either for production or for consumers in the U.S., but indeed, if a trade war were to ensue, or to start, as we know China has already threatened to retaliate against certain types of U.S. products," Peck said.

The tariffs were largely criticized during the latest World Trade Organization (WTO) meeting in Geneva. The WTO said that trade representatives from more than 40 members, including 28 from the European Union (EU), took the floor to warn against U.S. tariff measures.

Peck said that the tariff proposal is a violation of WTO rules and he suggests that China can appeal to the WTO.

"Now that if the U.S. indeed, or the Trump administration in particular, uses 301 to finalize the tariffs, China has a very solid, very strong case in the WTO. And I would encourage China to pursue that. If I can make one other point I think that's important here is that the U.S. and China have become leaders in the global economy, and they both have benefited greatly from the WTO and the multilateral system. I think what's really important here is that, as leaders, yes, there are disputes, but they should utilize the WTO system, the rule of law, the multilateral trading system as a way to resolve those," he said.

In response to the U.S.'s unilateral action, China's Ministry of Commerce (MOC) said China will take legal action under the WTO framework and work with other WTO members to safeguard the stability and authority of the multilateral trade rules, reiterating China's stance of not wanting or fearing any trade wars.

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  • ID : 8076769
  • Published : 2018-03-25 10:26
  • Last Modified : 2018-03-26 17:37:03
  • Location : China;United States
  • Category : economy, business and finance
  • Duration : 2'13
  • Audio Language : English/Nats
  • Source : China Global Television Network (CGTN)
  • Restrictions : No access Chinese mainland
  • Version : 2
  • ID : 8076769
  • Published : 2018-03-25 18:21
  • Last Modified : 2018-03-26 17:37:03
  • Location : Chine;États-Unis
  • Category : economy, business and finance
  • Duration : 2'13
  • Audio Language : Anglais/Nats
  • Source : China Central Television (CCTV),China Global Television Network (CGTN)
  • Restrictions : Pas d’accès dans la partie continentale de Chine
  • Version : 2
  • ID : 8076769
  • Published : 2018-03-26 17:33
  • Last Modified : 2018-03-26 17:37:08
  • Location : Китай;США
  • Category : economy, business and finance
  • Duration : 2'13
  • Audio Language : Ангийский/Естественный звук
  • Source : China Central Television (CCTV)
  • Restrictions : Недоступно материковой части Китая
  • Version : 2
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