US-China Trade War Could Spread to Other Sectors: Economists

Chinese economists believe the trade war between the United States and China risks spreading into other areas including global finance, scientific research, and territorial disputes. This comes as China’s foreign minister announces the development of a blacklist of “unreliable” foreign companies, individuals, and organizations hostile to Chinese interests.Tra

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“The trade war will last from 30 to 50 years, Even if they do make an agreement now, in the future, the United States will find a reason for another one,” said Wei Jianguo, assistant director at the Chinese Center for International Economic Exchange.

Wei Tianguo also advocated for China’s restriction of rare earths sales used in the production of technology to the United States. China’s President Xi Jinping set off speculation that this was a possibility of this at a visit to a rare earths plant Wednesday.

China and the United States have been escalating their rhetoric since a trade deal between the two countries fell apart on May 6 after representatives for the Trump administration accused their Chinese counterparts of changing the deal at the last minute.

Later that month, Trump announced a ban on Chinese telecom company Huawei on allegations that it posed a national security risk. The move cuts off the company’s access to operating systems and parts made in the U.S.

The Chinese Foreign Minister Gao Feng accuses the use of violating international trade rules and the “spirit of contracts” for blocking supply or for other discriminatory actions against Chinese companies.

He also asserts that this kind of behavior is “putting our national security at risk.” Beijing's 25 percent retaliatory tariffs on U.S. products are scheduled to go into effect on June 1.