Anti-China sentiment is growing stronger in Washington and a former undersecretary for international affairs at the U.S. Department of Treasury is warning Beijing to pay close attention.
“I worry that Chinese authorities … underestimate how broadly the anti-Chinese sentiment is in Washington — it runs across the full political spectrum,” said Tim Adams, who is now president and chief executive of the Institute of International Finance (IIF), a trade association.
Adams also said that although the current administration was the one that pushed the trade war against China the majority of the 24 Democrats running for President in 2020 harbor some level of anti-China sentiment.
“Washington has become decidedly anti-China,” Adams told CNBC at the IIF meeting in Tokyo on Thursday.
In the same way, he is concerned that Washington does not understand the rhetoric from Beijing.
“I worry that there are those in Washington who think they understand the Chinese mindset, and that they can force President Xi Jinping to bend (to) the will of Washington’s desires, and maybe not appreciate … the rhetoric coming out of China,” he added.
The trade war between the two global giants further intensified in the past months.
U.S. President Donald Trump announced in early May that tariffs on $200 billion worth of Chinese goods would go up from 10% to 25%.
Washington is also considering subjecting $300 billion worth of Chinese goods to additional tariffs.
China retaliated by levying tariffs on $60 billion of American imports. Both parties have already included technology and education sectors in their ongoing trade dispute.
Turning to the U.S. economy, believes America is in a stable position – for now:
“I don’t think the economy is going to hit a wall anytime soon, unless we make serious policy mistakes — which we’re capable of doing.”
However, he pointed out that there could be “miscalculations” in Washington, Beijing and other capitals, where trade and nationalism are concerned, and that could hinder the growth of the U.S economy.