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Adam Posen's Advice to China on the Trade War

In a Beijing event with Chinese economists, Adam Posen says the tariffs pressed by the United States on China should not surprise anyone; they are consistent with longstanding views of President Trump. These policies impose costs on the US consumer and will stifle investment by unraveling supply chains and increasing uncertainty. Posen calls on China to respond with minimal retaliation. Chinese leaders should draw a line on what China will discuss with US and seek trade relations with the rest of the world, including work with Europe and Japan to reform the World Trade Organization. China should also enforce intellectual property rights and maintain a stable Yuan exchange rate and closed capital account, while seeking a trade status that is neither developing country nor rich country, but in between. This video was filmed at The Eighth Annual CF40-PIIE Economists Symposium.