Chinese Fiance Minster Lou Jiwei called Donald Trump an "irrational type" and said U.S., "wouldn't be entitles to world leadership" if it followed Mr.Trump's proposed trade policies toward China.
Mr.Trump has advocates imposing 45% tariffs on Chinas as a way to force it to change its trade policies. Mr.Lou said that under those conditions, the U.S. wouldn't be entitles to its position as the world's major power. But what Trump doesn't know or maybe he does know but he thinks the people who are listening are illiterate and naive, that almost any increase across-the-board would violate U.S. obligations under the WTO.
In a statement from his campaign, Trump said that China was "in total violation of WTO regulations" and that the U.S. "has incompetently allowed them to get away with this" and has failed to impose "equal or greater taxes and tariffs" on China. If he is elected president, Trump said, China "will learn to deal fairly and justly or we will not deal at all" with Beijing.
Mr.Lou was asked about his opinion on what Trump had to say and he answered very professionally, he said that Americans needed to recognize the U.S. and China "are mutually dependent on each other" and both have a lot to lose in any economic confrontation. "Our economic cycles are intertwined'" he said. "We have more in common than sets us apart."
But as he answered all those question he couldn't really answer solutions to Chinas economic problem. Many argue that Chinas stimulus program has gone on for too long and has produced an avalanche of lending by state banks, which inflated bubble in China's real-estate market and led to vast overcapacity in its industrial sector. Now the real-estate bubble has burst and the lending has saddled China with poorly performing companies that are having a tough time paying down their debts. Largely as a result, China's economy has slowed to below 7% annual growth in GDP, about half the 14.4% GDP growth it recorded in 2007.
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