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Open QuestionsAs unswerving superpowers meet unsustainable tariffs, Yao Yang breaks down the paradox
From the US-China trade war to China’s economic outlook for the months ahead, the economist and academic – known for his hot takes – talks policy and strategy
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Luna Sunin Beijing
Yao Yang is a Chinese economist, professor and former dean of the National School of Development at Peking University. He is known for making bold comments and offering advice on China’s economic development and institutional economics. In this interview, he unravels the ongoing trade war between the world’s two largest economies and delves into overcapacity, technological innovation and China’s other economic quandaries.
This interview first appeared in SCMP Plus. For other interviews in the Open Questions series, click here.
What’s your take on the current state and outlook for the US-China trade war? How likely is a deal, and what might its terms involve?
From the US side, there’s a growing recognition that the trade war is unsustainable. Even Treasury Secretary Scott Bessent has publicly acknowledged this – these extreme tariffs are essentially a form of embargo. We’re already seeing the consequences: weak first-quarter economic data, reduced investments, and instability in the dollar. All of this signals to Washington that tariffs alone are not a real solution.
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