Is the U.S. a Bullied Baby in Sino-U.S. Trade? China Cannot Be Made the Scapegoat!
Contrary to China’s positive efforts, the U.S. has reneged on its promises three times, sacrificing credibility for its own self-interest and repeatedly breaking its promises, putting pressure on China by increasing tax.
The State Council Information Office of the People’s Republic of China released the white paper China’s Position on the China-U.S. Economic and Trade Consultations on June 2, 2019. The Chinese government once again openly expressed its clear position to the world regarding current China-U.S. economic and trade relations, tracing back to the root of the problem and setting the record straight, after the white paper The Facts and China’s Position on China-U.S. Trade Friction was released on September 24, 2018.
Does Blaming China Make America ‘Great Again’?
The white paper has clearly defined the harmful consequences to which the current U.S. government’s frequent use of tariffs will inevitably lead. The white paper clearly points out that the initiation of a trade war in the U.S. has increased the burden on ordinary consumers, raised the production costs of enterprises, reduced the exports of enterprises and harmed the economy of the U.S. and the livelihoods of its people. For the international community, it has damaged the authority of the multilateral trading system, dragged down global economic growth and destroyed the global industrial chain and market division of labor.
In order to ensure objectivity, the white paper quotes a large amount of data from the World Trade Organization (WTO), the World Bank, the International Monetary Fund (IMF) and relevant think tanks and chambers of commerce in the U.S.. It can be described as “refuting Americans with their own arguments”. It strongly proves that tax increases introduced by the U.S. government are detrimental to others, as well as the U.S. itself. Waging a trade war is definitely not the right way for the U.S. to become “great again”, and U.S. trade bullying is creating great uncertainty for the world economy. There is no doubt that the U.S. government’s actions completely violate the nature of trade, the laws of a country’s economic development and the rules of global value chains under economic globalization.
Who is ‘Going Back on Their Word’?
The white paper reveales U.S. treachery and tendency to renege on its obligations in the process of China-U.S. economic and trade consultations since February 2018. In the white paper, the whole world can see clearly that over the past year or so, China has actively promoted China-U.S. economic and trade consultations on the principles of equality, mutual benefit, sincerity and trustworthiness. Contrary to China’s positive efforts, the U.S. has reneged on its promises three times, sacrificing credibility for its own self-interest and repeatedly breaking its promises, putting pressure on China by increasing tax.
China is not in a position to tolerate such broken promises, so it can only carry out necessary responses in its efforts to defend the interests of China and its people, the rules of world trade and the normal order of the global industrial chain. It must be noted that the U.S. is entirely responsible for the current stagnation of China-U.S. trade consultation. The U.S. is also entirely responsible for the global economic instability caused by China-U.S. trade friction.
Do Not Challenge the ‘Bottom Line’ or Cross the ‘Red Line’
The white paper has reaffirmed China’s position in its efforts to resolve current issues through consultations. At the same time, it has also put forward a clear request for the U.S. that consultations be conducted based on the principles of mutual respect, equality and mutual benefit, as well as joint effort and honesty. China will never make concessions on matters of principle.
It must be noted that even in facing the huge uncertainties unilaterally brought about by the U.S. to the world economy, China has always brought positive energy to efforts to stabilize the global economy and lead its development. No challenge shall hinder China’s progress.
China’s Industry and Information Technology Minister (right)grants a 5G license for commercial use to China Mobile, June 6, 2019. (Photo/Xinhua)
In fact, China is actively maintaining the international order, and the concept of a community of shared future for mankind creatively put forward by China under the principle of “achieving shared growth through discussion and collaboration” is also pointing out a correct direction for the continuous deepening and upgrading of economic globalization.
Cooperation is the only correct choice for China and the U.S., meaning that only win-win results can lead to a better future. Today, cooperation between the U.S. and China falls in line with cooperation with the whole world. Therefore, to reject China is to refuse to allow China to join in the development and prosperity of the world. In 1784, the U.S. Empress of China merchant ship came to China, marking America’s opening of its door to the world in its embrace of a major country in the Far East. Now, in facing China – the country approaching the center of the world stage – the U.S. should make the right choice.
Diao Daming is a researcher at the National Academy of Development and Strategy, Renmin University of China.