The United States is likely to suffer more in case it launches a trade war with China, as it will lose its access to low-priced goods manufactured in China, which will hit American consumers, according to the chairman of China's largest beverage maker, Hangzhou Wahaha Group.
"The new American administration has threatened to launch a trade war, but in my view, they will suffer more from the war," Wahaha Chairman Zong Qinghou told reporters on the sidelines of the annual meeting of the National People's Congress on Tuesday, March 7, China Daily reported.
"People will grumble about the U.S. government as domestic prices rise," Zong remarked.
During his campaign, U.S. President Donald Trump had pledged to impose new tariffs on goods, especially on exports from China, also accusing the country of being a currency manipulator.
Although China is ready to work with the U.S. to resolve its trade disputes, the Chinese state media warned that the country will retaliate if the U.S. trade war with China happens.
Zong, one of richest men in China, also said that the U.S. trade deficit with China, which stood at $347 billion last year, would continue if the U.S. would impose "stupid" restrictions on high-tech exports to China.
China has been asking the U.S. to ease restrictions on exports of sensitive technology and reduce the trade deficit by selling more to the country.
The U.S. however, continues to implement export controls especially on products with both civilian and military uses, which include software and computer processors, due to national security concerns.
"Western countries, especially the United States, sometimes are stupid, as they ban companies from selling advanced technology products in China," Zong, who is also a member of parliament, said.
"Only by exporting the products to a broader market can the U.S. cover the investment in the research and development stage," Zong added.
Wahaha, which literally means laughing baby in Mandarin, exports products to the U.S. which include bottled beverage, drinking water, and mixed congee, its top product.