President Donald Trump has said he’s ready to erect tariffs on more than $500 billion worth of Chinese imports to the United States.
The trade war between Washington and Beijing won’t have a huge effect on the Chinese economy, the former People’s Bank of China (PBOC) governor Zhou Xiaochuan told CNBC Friday.
« We used a mathematical model to calculate the negative impact of the trade war. It is not very large, it is not significant. It is less than half a percent (of an) impact to the Chinese economy, » Zhou told CNBC’s Steve Sedgwick at the Ambrosetti Forum on the shores of Lake Como in Italy.
President Donald Trump has said he’s ready to erect tariffs on all $506 billion worth of Chinese imports to the U. S. So far, Washington has slapped duties on $50 billion worth of Chinese goods, and a fresh $200 billion more is threatened this month. China can’t match the tariff threats because of the mismatch in trade.
Zhou said China’s response would be to quickly re-route goods to other countries and this is what the PBOC has also advised President Xi Jinping .
