Chinese Ambassador to Nigeria, Yu Dunhai, has said that the current U.S. tariff policy could trigger a severe global economic downturn, which could also in turn hurt the U.S. economy.
He gave the warning at a news conference on Friday in Abuja, cautioning that the U.S.’ aggressive trade tactics, which put maximum pressure on its trading partners, could ultimately backfire.
According to him, the U.S. is essentially working against itself because the ongoing tariff battle may harm the interests of the U.S., as well as its allies.
Citing insights from some U.S. intellectuals, Yu pointed out that many of the challenges facing the U.S. were the result of its internal conflicts.
Yu stressed the importance of focusing on addressing domestic issues rather than attributing blame to external entities.
He decried the impact of the U.S.’ isolationist approach and zero-sum games on the global stage, and its potentially severe consequences.
“By disregarding international cooperation and escalating the trade conflict, the U.S. runs the risk of fueling inflation.
“This will undermine its industrial sector, instigate market upheaval, thereby heightening the possibility of an impending economic recession,” he said.
He cited economic indicators in the U.S., such as a recent CBS survey showing significant opposition to tariffs among American voters and a notable spike in inflation rates, particularly food items.
Yu noted that Goldman Sachs’ revised projections of an increased likelihood of a U.S. recession further underscored the gravity of the situation.
He added that global institutions like the International Monetary Fund had also issued warnings that U.S. tariffs could lead to a substantial reduction in global economic growth.
This, he said, would negatively impact trade volumes and disproportionately affect developing nations, particularly African countries.
The ambassador also critisised the U.S. for targeting African nations under what he described as the false premise that trade surpluses were tantamount to unfair practices.
He noted that such actions would culminate in adverse consequences, including currency devaluation and market instability across the African continent.
Yu said that the potential consequences of such tariffs on African economies could impede their growth trajectories.
He added that these would pose challenges to ongoing industrialisation and poverty alleviation efforts, ultimately jeopardising the progress of the continent.
WILL BOLSTER CHINA-NIGERIA ECONOMIC TIES
Chinese Ambassador to Nigeria, Yu Dunhai, says the challenges posed by the tariffs which the U.S. recently imposed on global trade will bolster China-Nigeria economic and trade ties.
Yu, who made this known during a news conference on Friday, in Abuja, said the new development was an opportunity to bolster China-Nigeria partnership amid the challenges it posed.
He emphasised that the U.S. tariff controversy had the potential to engender mutual cooperation between the two countries, describing it as a “crisis with opportunities.”
The News Agency of Nigeria (NAN) reports that the news conference was held to address the prevailing China-U.S. economic, trade and tariff issues.
The ambassador underscored the significance of upholding a free and open multilateral trading system, describing it as crucial for driving African countries’ development and revitalisation initiatives.
“African nations are committed to development and revitalisation, which requires a free, open multilateral trading system and a stable, predictable global environment.
“History has shown that China is a reliable partner for Africa, trustworthy, mature, and steadfast.
“China’s development and commitment to high-level openness will bring much-needed stability to an increasingly uncertain world,” he said.
Yu reiterated China’s commitment to expanding market access, particularly for least-developed countries in Africa.
According to him, this is exemplified by the zero-tariff treatment pledge made during the recent Forum for China Africa Cooperation’s (FOCAC) Beijing Summit.
He highlighted the tangible opportunities that had emerged for African nations as a result of China’s market initiatives.
Yu also expressed optimism about the potential for enhanced cooperation between China and Nigeria in various sectors, such as increased exports, investments in key industries, and infrastructure development.
The envoy underscored the positive impact such collaborations could have on the economic growth and modernisation of Nigeria.
He stressed China’s dedication to work closely with Nigeria to realise the outcomes of the FOCAC Summit and promote mutually beneficial partnerships.
Yu highlighted China’s shared commitment to upholding a multilateral trading system, combating protectionism, and fostering a fair international environment for economic progress and global cooperation.
“Together, we will uphold the multilateral trading system, resist protectionism, and foster an open, inclusive, and fair international environment.
“Our shared goal is to advance an equal and orderly multipolar world and a universally beneficial and inclusive economic globalisation, building a community with a shared future for humanity,” he said.
