Containers are seen in the process of logistics operations at Port Newark Container Terminal and Maher Terminal owned by the Port Authority of New York and New Jersey in Bayonne, New Jersey, the US. File photo: Xinhua

A US scholar on Tuesday called on the US administration to base its trade discussions with China on “economic facts” rather than “political ideologies, while highlighting China’s consistent calm, rational, and responsible approach to China-US trade negotiations.

Carl F. Fey, professor of strategy at BI Norwegian Business School, made the remarks during an exclusive interview with the Global Times, during which he also discussed the trade outlook between the world’s two largest economies and expectations for the ongoing China-US talks in Sweden, which have drawn widespread attention.

Fey noted that the existing high tariffs are not only detrimental to both US and China, but also the global economy. He pointed out that such tariffs raise consumer prices, thereby curbing economic growth, and disrupt global supply chains – adjustments to which cannot be made overnight.

The US scholar called on both sides to focus on their comparative advantages and work toward mutual benefit through free trade. “I hope that step by step closer relations based on facts and not ideological differences can develop. This would be good for China, the US, and the world,” he said.

However, he also noted the unpredictability of US policy, which could generate uncertainty more damaging to businesses than the tariffs themselves. “This uncertainty forces companies to delay investments and decisions, hampering economic planning,” he explained.

By contrast, the expert praised China’s stable and predictable economic policies, describing them as a “stabilizer” for the global economy.

Fey also commended China’s composed and firm stance during trade negotiations with the US. “China’s ability to stay calm and strong stems from its status as a major economic power and the US’ reliance on Chinese goods and markets,” he said.

On the US repeated focus on so-called trade imbalances, Fey argued that the issue is far more complex and should not be used hastily as a pretext for punitive tariffs. “Most focus on trade talks has been about trade in goods, but trade in services, which the US has a trade surplus with China, should also be considered,” he said.

According to the US Department of Commerce, from 2001 to 2023, the US annual service trade surplus with China expanded 11.5 times to $26.57 billion. In 2023, China continued to be the biggest contributor to the US service trade surplus, representing roughly 9.5 percent of the total. 

Fey observed that the US administration holds an overly rigid view of how balanced China-US trade should be and how quickly such a balance should be reached. He added that “it is important that discussions are based on economic facts and not political ideologies.”

He emphasized that China has already taken substantial steps to open its markets and promote balanced trade, citing various import expos, including the China International Import Expo organized each year in November in Shanghai.

Fey expressed hope for a gradual strengthening of China-US relations based on facts, not only in the economic and trade domains but also in people-to-people exchanges, which he believes would benefit both nations and the world.

He stressed that the first step is helping the world understand China’s current state. “An accurate understanding of what China is today would really help in trade negotiations and for firms to do business abroad more generally.”

The expert also noted the growing importance of diversified global trade in the context of rising protectionism, identifying unique opportunities for cooperation between China and European nations such as Norway.

“Norway is a global leader in green technologies, including green shipping, carbon capture and storage, and others,” Fey explained. Meanwhile, China, as the world’s largest shipping nation, EV producer, and wind energy equipment manufacturer and user, is well-positioned to partner with Norway, he said.