Many economic frictions including the US restrictions on Chinese textiles are because some people like to meddle in trade, said Dr. Vernon Smith when asked to comment on the tendency of intensifying trade war under the economic globalization in an interview.

The Nobel laureate said, the continuously increasing trade between China and the US is beneficial to the two countries and other nations. Bilateral trade should be encouraged. In the United States, he is also always opposed to American restrictions on trade with China.

I don't understand why some US industries are so afraid of outsourcing or import of cheap goods, the Nobel economics prize winner wondered.

In his opinion, the US enterprises can shift the production to China because the cost there is lower than in the US. In this way, cost saved can be invested in new technologies to create new job opportunities and maintain competitiveness in global contests.

Labor-intensive goods from outside the country can effectively promote the technological upgrading in domestic industries. While transferring the production to cheap-labor developing countries, developed countries can save time and energy in R&D, standard-making and optimizing product mix.

Dr. Smith sniffed at the argument that China's textile exports have affected the employment of the American and Europeans. He said, at his times, Henry Ford invented automobile, bringing opportunities to car dealers while at the same time making many coachmen and horse-raisers lose their jobs. However, are we supposed not to produce automobiles because of this? We should improve people's livelihood through further making use of new technologies.

"Globalization" is not a new word; it is a word portraying human pursuit of better lives through exchange and the global distribution of resources; it is a peaceful word. "If the goods can not cross border, soldiers will," citing a well-known saying, Dr. Smith told reporter his idea on globalization.

By People's Daily Online