U.S. President Donald Trump's upcoming visit to China could help improve the business environment for American companies operating in the country despite lingering tariff and non-tariff barriers, a U.S. expert said.
Trump will pay a state visit to China from May 13 to 15 at the invitation of Chinese President Xi Jinping.
In an interview with China Global Television Network (CGTN) on Monday, Jeff Moon, former Assistant U.S. Trade Representative for China, said China-U.S. trade relations would likely continue to be affected by various tariff and non-tariff measures, but the visit could still help U.S. companies navigate the Chinese market more smoothly.
Moon pointed out that Trump's tariff policies have produced mixed results, adding that tariffs and non-tariff barriers between the two countries are likely to persist.
"Tariffs produce mixed results. President Trump's tariff policies have resulted in significant concessions from some trading partners in the form of reduced tariffs and investment pledges. But tariffs increase costs and throw artificial complications into commercial relationships. My overall view is that I prefer free trade and don't favor either tariffs or non-tariff barriers. But U.S.-China trade relations have always suffered from tariffs and non-tariff barriers and that situation is likely to continue into the indefinite future," he said.
Trump is expected to be accompanied by a delegation of prominent U.S. business leaders during his visit, which Moon said could help companies operating in China and ensure their concerns and suggestions are reflected in policy discussions.
"Corporate executives want geopolitical stability and a level playing field in China. They know how to design and produce superior products and how to compete in foreign markets. But they can't control geopolitical tensions between countries and in world markets. And they can't control the many non-tariff barriers to doing business that they encounter in China. Governments can help address those problems, so that's why it's important for corporate executives to participate in summit events to make sure that their views are heard and factored into policy outcomes," he said.
Trump's China visit raises hope for smoother trade ties: expert
