China unlikely to budge on fundamental change: Leading American economist

Using tariffs for leverage will not work if the goal is to fundamentally change the Chinese system, says Dr Adam Posen, president of the Peterson Institute of International Economics.
Using tariffs for leverage will not work if the goal is to fundamentally change the Chinese system, says Dr Adam Posen, president of the Peterson Institute of International Economics.PHOTO: PETERSON INSTITUTE FOR INTERNATIONAL ECONOMICS
With tough talk on both sides, few are enthusiastic about a deal emerging from the meeting between US President Donald Trump and Chinese President Xi Jinping at the G-20 summit. US economist Dr Adam Posen breaks down the impact of the trade war.

WASHINGTON - Decoupling the United States from China does not make it more likely that China will budge on conceding fundamental changes, said a leading American economist.

"If you have very narrow specific goals, then you can get them to a trade negotiation (with tariffs)," Dr Adam Posen, president of the Peterson Institute of International Economics (PIIE), a private, non-partisan think tank, told The Straits Times in an interview.

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