Unfair China Trade Cost American Workers, says CEO

Stephen Schwarzman, billionaire co-founder of investment giant Blackstone, recently told CNBC that he believes China’s miracle economy came about because of its unfair trade and business practices.

Beijing is reluctant to change their way of doing things because of the massive gains they’ve received because of it. 

“China in the last 40 years had more growth, I think, than any country in history. It’s an astonishing miracle what they did. But they did it behind tariff walls. They did it behind markets that are not accessible. They did it with other approaches to intellectual property than are shared in the developed world,” Schwarzman stated to CNBC. 

“So their desire to give all that up and their growth rate is obviously low.”

Schwarzman has a number of strong ties to China and he believes that Beijing is at a crucial turning point at the moment. As he puts it, “[China] … recognizes that everybody is going their own ways, U.S. and China decoupling.” 

Western developed economies, including the United States, have been put at a disadvantage by allowing China to emerge as the global superpower it is today, he said.

“The developed world has suffered. We’ve got 40% of our people who are really hurting in this country whether it’s [they] can’t write a $400 check or don’t pay income taxes. It’s not because it’s something they do not want to do. It’s just they’re hurt.”

Schwarzman contends that the Trump trade war is politically popular because it is a lashing out at grievances caused by China’s rise to power. 

“That leads the developed world to say to China: ‘We’ve got to rebalance this. It’s working for you. It’s not working for us,’” Schwarzman said.


Washington has long aired its grievances of unfair trade practices to China. This includes intellectual property theft, lack of equal local market access, and outsourced manufacturing. 

While speaking with CNBC’s Street Signs Asia Robert Kapp, president at Robert A. Kapp & Associates, stated that avenues for addressing these concerns has now devolved into an “adversarial relationship” between the two countries. 

“We started with a list of American grievances that was presented to the Chinese at the beginning of the … negotiations. And there were some very serious matters on that list.”

Advisors now believe it’s time to let the hostile trade war subside and come to a real agreement to address the issues on both sides.

Recommended Articles

5 Franchises You Can Buy for Less Than $80K

A convenient way to start a business is through a franchise. There is an already built-in business model, consumer base, and operational supply chain. However, if you join a globally-known

How to Encourage Loved Ones to Adopt Healthy Eating

It’s painful to watch loved ones suffering with chronic health problems, such as food intolerances, headaches, allergies, digestive pain and menstrual issues. We wish there was something we could do

How to Retire 15 Years from Today

Retirement planning should ideally begin from the day you have your first job. However, even if you have made no special financial preparations for your retirement, you could still start

The Cost of Owning a Pet Can Be Surprising, So Plan Ahead

A cat or dog can be cute, cuddly, and great for companionship. Yet the cost of owning a pet can be surprising. Pets are living beings that must be taken

Dump Growth Stocks for Value? Market Weighing Options

In this article I make a brief comparison of growth stocks versus value stocks, a topic often addressed by the mainstream financial media.Growth stocks typically offer a substantially higher growth

7 Countries Where You’ll Find Bugs On the Menu

Creepy, crawly, gross, slimy. There are several ways to describe bugs, but here in the United States, few of us would use the words “delicious” or “yummy” when talking about

Get Rich Slowly with a Slick Dividend Reinvestment Strategy

The time-tested wisdom from leading value investors has always been that if you want to make money in the stock market, invest in high quality stocks and do not sell

A Surprising Way to Get Health Benefits from Coffee

You may have heard of green coffee bean extract for weight loss, but this potent natural remedy offers other important benefits, too. Read on to discover how green coffee bean

4 Ways to Make Extra Cash Using Your Car

Owning a car does not necessarily have to be an expensive proposition. While you cannot avoid paying the auto loan installments or the car insurance and maintenance costs, you can

Paid Not to Work: How Universal Basic Income Might Compensate for Coming Job Losses

The unemployment rate for the United States represents only the amount of people who are unemployed and also actively looking for work. Separately, the workforce participation rate includes Americans were unemployed

Meet the People Who Built or Inherited Fortunes — Then Lost It All

It’s amazing how much money rules our lives. The average person will barely make $1 million over the course of a working lifetime. Meanwhile, in the United States and all

Luxury Used Cars You Can Buy Cheap and Almost New

Looking for a luxury used car you can buy cheap? Careful what you wish for. First-time owners of luxury vehicles don’t always appreciate maintenance and repair costs. Uninformed buyers may