CGTN Europe interviewed Professor Jeffrey Sachs, a renowned American economist and public policy analyst.
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00:00Let's talk now to professor Jeffrey Sachs who's an economist and public policy analyst welcome back to the program professor good to see you
00:08This rise in tariffs will end up meaning for u.s. China relations
00:14It's very negative. It's not such a small matter that it's just going to be
00:21smiled away
00:23The u.s. Is turning a blatantly
00:26protectionist the
00:28Excuses given by the administration or the explanations given by the administration are extremely weak
00:34This is just overt protectionism. It violates the World Trade Organization
00:39rules, but
00:41The u.s. Is just blowing off the entire world trading system rules
00:48It's defensive
00:50it is
00:53Unilateral of course as your
00:56Reporter just said it is all
00:59domestic politics
01:00But domestic politics is one thing
01:04International relations trade the world economy geopolitics is another thing and games that might be played
01:11Internally, and I don't think they will have much impact by the way on the election, but whatever games are played
01:19internally
01:20when they
01:21violate basic principles of
01:24International relations they have serious consequences
01:27So these tariff rises cover various industries electric vehicles a big one a solar panels
01:34Aluminium steel for example will these rises make any material difference to those industries either in the u.s. Or in China
01:42Well China is the world's low-cost producer of many of these goods
01:47That's because China's been investing in these industries for 20 years
01:52The United States has been debating about solar power China has built up the world's largest
01:59Photovoltaics industry, it's not a surprise that they can outcompete Europe and the United States. They've been working hard on it
02:06They've been putting a lot of money into it the same with electric vehicles. It is true. China would dominate the
02:13world electric vehicle industry because the companies are
02:18Extremely competitive among themselves. There are hundreds of them as you know
02:23Though a few big ones emerging. They are the lowest cost producers
02:29They are fiercely competitive within China's own economy
02:33which has been driving down the costs and driving up the production efficiency and
02:38Therefore they can outcompete the US and Europe which stood around saying well
02:43We don't know if we want to do this green economy stuff this climate change stuff for 20 years
02:50But China got on with it. So this is the basic story now
02:54what it means is that in the rest of the world outside the u.s. And
02:59Increasingly protectionist Europe China will have very very little essentially no competition from the United States and Europe
03:07So China will
03:09Absolutely be able to win over world markets in the emerging and developing economies
03:14So does Joe Biden then have a point that Chinese products are actually stifling the growth of American green technology?
03:23In a way, yes, they're out competing American companies all of the explanations given in this press release though about
03:32China's unfair trade practices and flooding global markets with
03:38Artificially low-priced exports. No, he doesn't have a point there. He has a point that China is out competing the United States
03:45Jeffrey great to talk to as always. Thank you for joining us. That's professor Jeffrey sacks the public policy analyst and economist