Between Washington and Beijing, it is a technological battle that is being waged, not a trade-war, says French professor.
His comments ferment the views that U.S. President Donald Trump is after something bigger in this week’s fight he started with China on tariffs.
The latter, Lionel Fontagné from the University Paris-I-Pantheon-Sorbonne and an expert in commercial relations said the fears that China will catch-up with the U.S. motivated the current American warfare.
The professor commented on the potential of a trade-war breaking between China and the U.S. saying the American tariffs on steel and aluminium are part of the traditional conflict.
Trump has moved to put more pressure on China with an additional tariff that would hurt Chinese agricultural export to America.
“They targeted industries that are failing, but this time, the entire affair is different. It is a technological battle that is being waged by Washington. More than a trade war.” said the professor.
The duties are only a small portion of the arsenal that the U.S. is readying against the Chinese, he said to Le Monde.
He said U.S. President Donald Trump is interested in the other aspects of the American economy, that is innovation.
“His advisors fear that the U.S. will be caught by China in this aspect. They fear the horizon of 2025 pre-empted by Beijing in its industrial policy plans – Made in China 2025 – that could result in what historians are calling a potential reversal of global economies.”
It is the relay between England and the U.S. in the yesteryears and now between the U.S. and China.
“To prepare against such a potential, Washington is utilising a high impact argument, that is of the non-respect by China of Intellectual Property.”
He said the tariff issues that the U.S. started against China will not stop the Chinese from progressing, but it risks penalising the American enterprises in the long run.
“Effectively, they are very important products for the export American export industry. And Trump does not have any reason to see the voters turn against him,” he said.