A trade war is neither a win-win scenario nor a simple shift in gains, a Chinese economist said, calling such a conflict an exercise in a “negative-sum logic” that contends for superiority at any cost – even the aggressor’s own well-being.
“Beyond the economic rationale of pursuing benefits, there’s a political logic to trade – one that seeks to secure a country or economy’s dominant position,” said Zhang Yuyan, dean of the Chinese Academy of Social Sciences’ School of International Politics and Economics, at the Boao Forum for Asia on Tuesday.
“One way this logic plays out is by suppressing competitors – even if I incur losses myself, as long as my rival suffers greater losses, I can still maintain my advantage. This is a lose-lose situation.”
“I am quite pessimistic about the future of free trade because some major powers have abandoned multilateralism, with the World Trade Organization largely sidelined,” said Long Yongtu, China’s chief negotiator during its accession to the UN body.
We attach great importance to issues concerning Europe and the US, but … we must ensure our own backyard and region are in order
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