Nobel laureate in economics and University of Chicago professor James Heckman, in a recent interview with China Media Group (CMG), shared his views on artificial intelligence, the United States’ so-called “reciprocal tariff policy,” and China’s development trajectory. Responding to a question on the transformative impact of artificial intelligence, Heckman said the technology is continuously generating new possibilities, fostering new skills, and creating fresh opportunities.
He noted that discussions about AI’s impact on employment should not be limited to job losses, as it can also enhance job quality. “If AI helps me produce goods or perform tasks more efficiently in a factory, it can actually improve my job security,” he said, adding that generative AI is primarily linked to producing new ideas and refining human thought processes. Professor Heckman first visited China in 1997 and has returned several times since. China’s development, he said, has left a profound impression on him. “China’s growth has been astonishingly rapid,” he remarked, highlighting advancements not only within his field of research but across the broader economy. He pointed to significant improvements in industrial quality, logistics, and infrastructure, including highways, railways, airports, and interconnected transport systems, all of which have contributed positively to economic vitality.
He recalled that a journalist from The New York Times once cited former U.S. President Barack Obama’s remarks during a visit to China, where Obama praised the country’s infrastructure development. Heckman noted that while the United States had been heavily engaged in costly wars in Iraq and Afghanistan, China had focused its resources on improving living standards, building infrastructure, and advancing industry. As a result, China has reached a high level of development in global trade and institutional research, making progress across nearly all economic sectors—an achievement he described as highly commendable. Heckman also expressed concern over the U.S. government’s imposition of so-called “reciprocal tariffs” on other countries. Along with dozens of prominent economists, he has signed a joint anti-tariff statement opposing protectionism in trade. This was not the first such move; a similar joint letter had been sent to the U.S. government in 2019. He argued that the imposed tariffs run counter to fundamental economic principles and lack a solid or logical basis. He pointed out that the rising cost of living in the United States is partly linked to such policies. While proponents believe tariffs will boost domestic production and employment, Heckman said this approach reduces efficiency, noting that certain goods—such as avocados and coffee—cannot be produced domestically. Moreover, he said, tariffs disproportionately harm lower-income groups and workers who rely on imported goods. Citing data, he noted that coffee prices have risen by 15 to 25 percent. The current environment, he warned, is casting a shadow of instability over global trade, with tariffs being imposed and withdrawn unpredictably.
“Economic theory tells us that when such uncertainty prevails, people tend to wait and observe rather than invest, and they become cautious about forming long-term trade relationships,” he said, warning that such instability undermines established economic ties and makes the United States a riskier trading partner. He added that many countries are now adjusting their trade patterns to avoid U.S. tariffs, seeking alternative suppliers due to the unpredictability of American policy. In his writings, Heckman has consistently expressed an optimistic view of China’s development. He praised the Chinese people for their strong value system, perseverance, and personal virtues. “Among most Chinese students and people I have encountered, there exists a strong sense of unity and national pride, even where there are differences of opinion. This is something many Americans lack,” he said.
Source: Shishir–Alim–Akash, China Media Group (CMG).