The last several months of tit-for-tat tariffs between the U.S. and China may only be the beginning of a prolonged economic conflict.
Analysts said the duties were not as severe as traders expected, and there is still hope of reconciliation. But reality may prove otherwise as the world's two largest economies, each coming from a vastly different culture, pursue its own development.
"Now we need to think about whether this current trade war will turn into an economic cold war," said Jing Ulrich, managing director and vice chairman of Asia Pacific at J.P. Morgan Chase.
"China will not change its domestic policy because of external pressure," she said Thursday, during a panel discussion at the World Economic Forum conference in Tianjin.
"The problem is in the technological sphere [where both] China and the U.S. want to lead. China, of course, is already a trailblazer in many areas," Ulrich said.
"Five years ahead of the U.S."
Beijing is in the middle of a years-long effort to transition the country towards relying on consumption for growth, rather than manufacturing. The government has also launched a "Made in China 2025" program to encourage domestic technological innovation.
"I see China as five years ahead of the U.S. when it comes to the extent to which digitalization is integrated into this economy," Arun Sundararajan, professor at New York University's Stern School of Business, said during the same panel discussion Thursday.
However, he said, the U.S. is still ahead of China on research and development in artificial intelligence. He also noted that Japan surpasses both countries in industrial robotics.
Reference: CNBC
Read More: https://www.cnbc.com/
Thai
Eng