America's Big Problem With China is Market Access
Kevin Rudd on CNBC's Squawk Box
Kevin Rudd, President of the Asia Society Policy Institute, appeared on CNBC’s Squawk Box to discuss the implications of the Trump administration’s trade policies vis-a-vis China.
Rudd argues that America’s goal when negotiating with the Chinese should be to increase market access, because “there aren’t sufficiently large numbers of Chinese domestic markets open fully to American products and services.” He notes that issues such as intellectual property theft and forced transfer of technology should also comprise a key part of the Trump administration’s “hard-edged negotiations” with the Chinese.
However, Rudd states that the administration’s unilateral tariffs will not lead to a “productive resolution point” in U.S.-China relations, and might instead lead to a damaging trade war. In addition, because Chinese steel only makes up a small percentage of American imports, any unilateral action is likely to prove ineffective in reducing steel dumping. Instead, Rudd recommends “a combined anti-dumping action by all China’s major trading partners” to combat the problem. At the same time, he acknowledges that China is actively trying to move away from steel production to the services sector, as part of an “extraordinary transformation” he sees taking place in the Chinese economy. (5 min., 9 sec.)