No winners from US’ ‘small yard, high fence’ approach to China: economist

A prominent Chinese economist on Thursday bombarded Washington’s “small yard, high fence” investment restrictions, saying the strategy would only lead to a lose-lose situation as it makes China suffer, but does not benefit the United States.

Yu Yongding, a former adviser to China’s central bank, echoed Beijing’s official stance concerning the strategy adopted by the US to restrict Chinese access to key technology, especially ones with military potential.

The strategy, which involves giving stringent protection to certain decisive sectors as economic relations are maintained, has also contributed to the destruction of the World Trade Organization (WTO) that advocates international cooperation and helps settle disputes, he added.

It also indicated rising concerns from Chinese academics and policymakers over Washington’s China policy, particularly ahead of November’s presidential election.

“The US can sue China under WTO rules if it feels China’s policies or practices are unfair, but the US has destroyed the WTO,” Yu, now a senior economist at the governmental Chinese Academy of Social Sciences think tank, told the Bund Summit in Shanghai.