Kissinger acolyte Robert Hormats on how China, US can narrow their ‘trust gap’
Robert Hormats, a key figure in the re-establishment of US-China relations in the 1970s, highlights the uncertainty surrounding the potential repeal of China's permanent normal trade relations (PNTR) status by the incoming Trump administration. Hormats, who served as a senior economic adviser to Henry Kissinger and later as Undersecretary of State, notes that Congress is currently considering several bills aimed at revoking this status, which has been in place for over two decades.
Predicting Trump's actions on this issue is challenging, as Hormats points out the unpredictability of the president-elect. However, he suggests that Congress is likely to take legislative action regarding PNTR. If the status is indeed revoked, the US would revert to pre-1990s tariffs on Chinese goods, which were significantly higher than those imposed on most other countries. This shift could have profound implications for trade relations between the two nations.
The historical context is crucial; Hormats explains that the reduction of tariffs following the granting of PNTR was a significant change in US trade policy towards China. Repealing this status would not only affect economic ties but could also signal a broader shift in US foreign policy, potentially leading to increased tensions and a reevaluation of the US-China relationship.
via SCMP Full Text Feed
Robert Hormats, a key figure in the re-establishment of US-China relations in the 1970s, highlights the uncertainty surrounding the potential repeal of China's permanent normal trade relations (PNTR) status by the incoming Trump administration. Hormats, who served as a senior economic adviser to Henry Kissinger and later as Undersecretary of State, notes that Congress is currently considering several bills aimed at revoking this status, which has been in place for over two decades.
Predicting Trump's actions on this issue is challenging, as Hormats points out the unpredictability of the president-elect. However, he suggests that Congress is likely to take legislative action regarding PNTR. If the status is indeed revoked, the US would revert to pre-1990s tariffs on Chinese goods, which were significantly higher than those imposed on most other countries. This shift could have profound implications for trade relations between the two nations.
The historical context is crucial; Hormats explains that the reduction of tariffs following the granting of PNTR was a significant change in US trade policy towards China. Repealing this status would not only affect economic ties but could also signal a broader shift in US foreign policy, potentially leading to increased tensions and a reevaluation of the US-China relationship.
via SCMP Full Text Feed
