Dr Andy Xie: China must respond to Biden’s new tariffs with an eye on Europe

Dr Andy Xie

In a recent SCMP article, Dr Andy Xie opined that China has a much better chance of nudging the EU on free trade.

Here are some highlights:

However, China should not respond to Biden’s tariffs by restricting exports of materials or equipment that the US green tech industry needs. Sure, this would hamper the Inflation Reduction Act. But slowing the green transition is in no one’s interest. Rather, it is in China’s interests to supply US green tech because it adds to the scale of Chinese green tech.

China’s tariffs on US cars would have an immediate impact, whereas Biden’s tariffs on Chinese EVs are largely psychological. They might make an meaningful difference in November, when Pennsylvania and a handful of battleground states could decide the election.

However, although Donald Trump might have spoken wildly in office, the world has become more chaotic on Biden’s watch. The prospect of Trump returning to the Oval Office might not be so bad.

Dr Andy XieDr Andy Xie 謝國忠is an independent economist, director of Rosetta Stone Advisors and is one of the few economists who has accurately predicted economic bubbles including the 1997 Asian Financial Crisis and the more recent subprime meltdown in the United States.

He was a part of Morgan Stanley in 1997 and the Managing Director and Head of the firm’s Asia/Pacific economics team until 2006. He also spent two years with Macquarie Bank in Singapore, an associate director in corporate finance and five years as an economist with the World Bank.

Dr. Xie earned a PhD in economics in 1990 and an MS in civil engineering in 1987 from the Massachusetts Institute of Technology.

Contact us today to engage Andy Xie to share his insights at your next conference.