Tough US policies against China in trade, immigration have backfired: Forbes

WASHINGTON - The "tough" policies adopted by the United States against China in trade, semiconductors and immigration have backfired, according to Forbes on Wednesday.

US policies of this kind made the common mistake children make when they start playing chess -- they forget the other side will also get to make a move, read an article published on the Forbes website.

In May 2020, the United States issued a proclamation against students and researchers from China, which led to the US State Department to deny and revoke the visas for a number of Chinese graduate students and researchers, the article said.

"The proclamation sweeps up many people who show no evidence of bad intent. Picture an American young person denied a visa to study in a foreign country because he or she attended MIT and professors at MIT have received Pentagon funds or US government research grants," the article said.

"Official figures would understate the proclamation's impact because individuals who believe they will be denied visas would not even apply," the article added.

The United States could lose a valuable talent pool and the financial and scientific contributions Chinese students make to US universities and the United States, the article said, citing Jeffrey Gorsky, former Chief of the Legal Advisory Opinion section of the Visa Office in the US State Department.

When the United States expanded sanctions and tightened restrictions on selling semiconductors and related technology to Chinese companies, it created a much greater incentive for China to develop fully its own semiconductor industry, the article pointed out.

The sanctions harm the ability of US semiconductor companies to innovate and make profits, while undermining US semiconductor leadership, the article said.

Furthermore, the United States' tough tariffs policy on imports from China has failed miserably, the article said, noting the US government has to use taxpayer money to mitigate the damage, including an unprecedented payment of $28 billion to farmers.

The US tariffs policy has also harmed the US economy, according to the article. Companies listed on the US stock market lost about $1.7 trillion in market value, and the US Congressional Budget Office estimated the policy cost the average US household more than $1,200 a year.

The majority of Americans think the country is headed in the wrong direction, and they doubt the White House's ability to change that, according to a new poll published on Tuesday.

The Wall Street Journal released survey data showing that 61 percent of Americans believe the economy is headed in the wrong direction with rising inflation a key cause of concern.