Boao Forum Begins: Emphasis on Free Trade and Cooperation

International Desk

The Boao Forum for Asia (BFA) commenced on Thursday, where panelists from home and abroad expressed concerns over the U.S. government’s tariff policies during a session titled “U.S. Foreign Policy and Its Impact on Asia-Pacific Cooperation.” They argued that these measures would fail to achieve their intended goals and instead harm the U.S. itself.

At Thursday’s session, U.S. economist Jeffrey Sachs stated, “The new U.S. administration’s trade policy doesn’t require much effort to understand. It is built on many lies and fundamental misconceptions. It is primitive.” He added, “If you do simple math, you’ll see that these tariffs don’t even come close to the tax cuts for America’s wealthy… These tariffs hurt poor Americans.”

Sachs noted that the tariffs would not protect the relevant U.S. industries but would instead have the opposite effect. He said, “When the auto tariffs were announced, what happened to auto stocks? They fell by 5%… This will damage the U.S. auto industry and make it permanently uncompetitive.”

In response to the new U.S. administration’s tariff policies, China’s former ambassador to the U.S., Cui Tiankai, remarked, “Higher tariffs mean less competition… fear of competition. It reflects a lack of confidence.”

Wang Huiyao, director of the Center for China and Globalization, viewed the recent U.S. tariff measures—particularly the increased tariffs on automobiles—as part of an escalating trend. He noted that the 25% tariff hike on automobiles would not significantly impact China “because we don’t export many cars to the U.S.” However, he pointed out that this move would substantially affect other countries, such as those in Europe and Japan.

In contrast to the U.S. measures, China’s tariff policy is clear. China has granted zero-tariff treatment on 100% of tariff lines for 43 least-developed countries with which it has diplomatic relations, aiming to support their development and enhance mutual benefits. Wang stated, “The U.S. is raising tariffs, while we are lowering them—this creates a dynamic contrast.”

Zheng Yongnian, dean of the School of Public Policy at Shenzhen’s Hong Kong University, said at the BFA that China’s opening-up policy should not be underestimated in its ability to reshape the global trade system. China has now entered a phase of high-level openness, and its unilateral opening-up serves as the best international public platform.

Chinese Foreign Ministry spokesperson Geng Shuang said on Thursday, “History has repeatedly proven that only through openness and cooperation can we seize opportunities for progress. China will continue working with all parties to create an open, fair, just, and non-discriminatory environment for scientific and technological development, bringing benefits to more countries and people.”