China warns against 'trade war,' appeals for cooperation


The united states in china have been trading tariffs all week president trump announced sixty billion dollars a new tariffs on chinese imports shortly thereafter china responded with three billion dollars in tariffs on us products will the back and forth break out into a trade war david lynch global economics correspondent for the washington post joins us now mr lynch thanks so much for being with us sure president trump course announced these tariffs after the us trade representative conducted an investigation of china's practices against us companies operating in china the complaints have been around for years but what are the chinese practices the president trump in particular doesn't like shirt will the tariffs are aimed in particular at a practice referred to as force technology transfer the chinese government for years has treated foreign companies us companies in particular with a what the us regards is discriminatory practices if if an american company wants to enter the chinese market they need to do so with a chinese partner the chinese partner controls the joint venture fifty one percent and they're required the us company is to turn over their trade secrets their advanced technology as a condition of market entry as a as a cover charge if you will for getting in and that puts the us in the long run at a disadvantage but at the same time why do so many people seem to believe that tariffs you're not a good way to address that problem of the day tariff is just a fancy word for tax and it's a tax paid by americans the people who pay the tariff are the ones who are bringing the chinese products into the united states and those are american companies and ultimately american consumers why do you think the chinese government response to sixty billion dollars in tariffs with just three billion dollars in terrorists i think the chinese are are playing very savvy game thus far trying to and the objective is to be firm enough to look as if they're responding and not taking any gulf from an outside power three billion dollars three billion three billion dollars three billion dollars into the law by shing the average guy in the streets of beijing he'll he'll hear that the chinese government has posted tall but the.

Coming up next