A great number of U.S.companies might get affected if U.S. President-elect Donald Trump does not tone down his rhetoric after giving statements on the trade relations between China and the U.S., according to an Chinese news editorial.
In a Global Times editorial, it warned of a possible negative impact on goods being traded by the two economic giants. In one of his controversial statements, Trump labeled China as a currency manipulator, which experts see could increase the pressure on the yuan.
"It runs counter to the trend of shorting the yuan in the international financial market," the editorial said. "However, China's reputation will be affected, and the trade atmosphere between China and the US will become more tense."
During his presidential campaigns, Trump has lashed out on China and warns on imposing 45 percent tariffs on its goods.
“If Trump wrecks Sino-US trade, a number of US industries will be impaired,” said the editorial.
According to the Chinese newspaper, Trump's statement will do more harm than good for his administration politically if he makes it difficult for China trade-wise. Even experts in U.S.-China trade relations calls Trump unprofessional after he declared China a bilateral economy.
On another note, the editorial mentioned the major industries and products that can get severely affected, including Apple’s iPhone, should Trump's stance on China persists. It presents China to take a tit-for-tat approach that could lead to setbacks in trade relations.
Some of the industries with current business transactions include the airlines, automobile and agriculture. People worry that Boeing orders can be replaced by Airbus and U.S. soybean and maize imports will stop. In terms of exchange education programs, China can put a limit to the number of Chinese students flying to the U.S. to study.
The Global Times has also stated that if the trade atmosphere of the two countries will be “impaired”, Donald Trump “will be condemned” by the whole American people and would “bear the consequences”.
Meanwhile, the Guardian thinks these bleak horizon for trade is unlikely to happen.
“Experts say officials in Beijing are still battling to untangle what a Trump presidency means for relations between the world’s two largest economies but wager he is unlikely to follow through on his most radical campaign pledges such as imposing 45% tariffs on “cheating China," the Guardian reported.
