Center

Economist forsees US launching trade sanctions against China

(Xinhua)
Updated: 2007-07-04 15:10

"Such actions could lead to higher US inflation and quickly impact the rest of Asia, which has become increasingly integrated into a China-centric pan-regional supply chain," Roach warned.

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The economist attributed the protectionism of the US Congress to a lack of knowledge of China. "They need to understand that 30 years ago China was on the brink of collapse. They need to understand China now faces a lot of problems and challenges. China needs our help and presents bigger opportunities than threats."

To remedy the situation, Roach suggested that the United States save more and train workers to face global competition and that China adjust its economic structure and be more aggressive in intellectual property rights protection.

"China needs to know the policy of Washington is very difficult. If you don't want to move aggressively in currency, that's fine. But arguments won't end if both sides don't agree to make a change," he said.