The Trump administration’s decision to close down China’s consulate in Houston is just another example of “political theater” that could bring more pain to the US economy in a time of crisis, according to Professor Richard Wolff.
The host of Economic Update sat down with RT’s Boom Bust to discuss the deteriorating relations between the world’s two biggest economies. Wolff believes that profits of American corporations will fall victim to the ongoing rift. He also stressed that, as well as inflicting losses on US businesses, Washington’s aggressive policies against China could hike prices and hurt American consumers.
“The United States needs China. It has produced greater profits for American corporations than they were able to get here in the United States,” Professor Wolff said, explaining that much of US businesses’ profitability comes from relocating to China and its booming market.
“We are already in an economic difficulty and that is an unthinkable additional burden on the American economy,” he said.
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