Scholar says trade war with China will hurt US moreBusiness | 8 Aug 2018 1:58 pm
In the long run, the Sino-U.S. trade tensions will hurt U.S. more than China, according to a scholar.
In a panel discussion held in Hong Kong, Kevin Murphy, George J. Stigler Distinguished Service Professor of Economics at the University of Chicago Booth School of Business, said everyone will be hurt by the trade war in the short run. But, if the tension continues, it will mostly hurt the U.S. more because China would likely be able to find alternative ways to recover its economy.
"Uncertainties from trade tensions have already created a paralysis where people are hesitant to make investments that need to be made, hindering actual wealth creation and further progress. The ultimate goal should be to get the situation resolved, and for governments to minimize their intervention when it happens," he said.
Murphy also said the growth of one country does not come in expense of any other country.
"The idea that this is a battle among nations may be great for politicians who want to push their agendas, but the truth is that growth comes from the people within a country," he said.
For China to grow further, Murphy said the key is to release its people to accomplish what they are capable of and to eventually drive the country forward.
"China’s growth will not make the U.S. poor, but it means that we could trade with more successful people around the world and invent technologies that would benefit the global population."