SCMP: Many Chinese companies ‘will go bankrupt’
If US delivers on tariff threats, court newspaper warns Judiciary must ready itself for possible fallout from China-US trade row
Original Article: Many Chinese companies ‘will go bankrupt’, if US delivers on tariff threats, court newspaper warns
In an opinion piece published on Wednesday by People’s Court Daily, Du Wanhua, deputy director of an advisory committee to the Supreme People’s Court, said that courts needed to be aware of the potential harm the tariff row could cause.
“It’s hard to predict how this trade war will develop and to what extent,” he said. “But one thing is sure: if the US imposes tariffs on Chinese imports following an order of US$60 billion yuan, US$200 billion yuan, or even US$500 billion, many Chinese companies will go bankrupt.”
That just shows how much of the Chinese products can’t compete with US products without the benefit of not paying any form of “import tax”. The tariff will force China to improve the quality of their products – in the long run, benefiting the rest of the world (rather than flooding the world with useless/poor quality products)
cover photo from supremepeoplescourtmonitor.com