Close links mean little chance of major trade war, says leading expert

The possibility of China and the US engaging in a major trade war is low given their close economic links, said a former central bank adviser.

The US last week initiated an investigation against China, examining the latter's intellectual property policies and practices under its Section 301 of the Trade Act of 1974. China has expressed strong opposition and said it will take all appropriate measures to protect its lawful interests.

"The possibility of a US-China trade war is slim," said Yu Yongding, an economist of the Chinese Academy of Social Sciences and a former member of the central bank's monetary policy committee. "The US has done that, as before, mainly to pressure China to toe its line, but given the two country's intertwined economic interests, such a war would be detrimental to both," he said.