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Home World News Asia

Jeffrey Sachs says US sabre-rattling at China can become self-fulfilling prophecy of war

August 3, 2025
in Asia
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Jeffrey Sachs says US sabre-rattling at China can become self-fulfilling prophecy of war
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Jeffrey Sachs is an economics professor and director of the Centre for Sustainable Development at Columbia University. He is president of the UN Sustainable Development Solutions Network. He was a special adviser to the UN Secretary General and has advised multiple governments on economic transition, debt crisis solutions and poverty alleviation policies. Part 1 of the Sachs interview, published in July last year, can be found here. This interview first appeared in SCMP Plus. For other interviews in the Open Questions series, click here.
The tariff truce between China and the United States is set to end in August. What do you forecast will happen after that? And what will happen to trade relations between China and the US for the rest of US President Donald Trump’s second term?
The United States learned that it can’t impose its will on China. The rare earths threat by itself was enough to cause the US to reconsider. So, almost immediately after putting on the high tariffs, the US backed down. And both sides know that each has some chokeholds on the other. For that reason, we might expect the two sides to maintain certain limits on the trade frictions in the years ahead. There will be, therefore, some kind of agreement, but it won’t stick in the details, and frictions will continue to wax and wane, with neither side definitively imposing its will on the other. The basic reason is that both sides have a mutual gain from continued trade. I’m hopeful that a measure of rationality will therefore prevail.

The biggest challenge, of course, is the behaviour of the US. The US started this trade war. This is not two sides fighting each other, but rather the US fighting China. We should remember that. The US needs to show some prudence at this point. I do suspect that there is a chastened view among many senior US officials. Trump himself is unpredictable. He has a very short attention span. Agreements with Trump don’t stick. So, I don’t foresee a quiet period, but I do foresee some limits to the competition because each side can do damage to the other and both sides have a strong reason to achieve some cooperation.

02:09

China, US top negotiators agree on ‘framework’ that will need approval from Xi and Trump

China, US top negotiators agree on ‘framework’ that will need approval from Xi and Trump

Let me add one more point. From a long-term point of view, China certainly should not regard the US as a growth market for its exports. The US is going to restrict China’s exports to the US one way or another. The relationship will not be harmonious. The US will not be friendly to China, or trustworthy. China should just take care that it’s expanding its exports to other markets, and should not be overly focused on trying to break through to the US market, or even to Europe for that matter. The rapid growth of China’s exports will be with Africa, Southeast Asia, South Asia, west Asia, Central Asia, Latin America – not with the US and western Europe.

What is your forecast for the US midterm elections, and will it be a tough battle for Trump? Can you comment on how divided the US is compared to before the election of Trump last year?

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