US government should bear sole, entire responsibility for severe setback to China-US economic and trade consultations
By Zhong
Sheng, People’s Daily
The US
government should bear the sole and entire responsibility for this severe
setback to the China-US economic and trade consultations, said a white paper
issued by China’s State Council Information Office (SCIO) on June 2.
The
white paper, titled China’s Position on the China-US Economic and Trade
Consultations, marks the second time for Chinese government to issue an
authoritative report on China-US trade issues after The Facts and China’s
Position on China-US Trade Friction was released last September.
The
8,300-character white paper teases out and introduces the origin and
development of the trade friction between China and the US, revealing China’s
integrity, inclusiveness and high sense of responsibility. It indicates that
China’s position and resolution have always stayed unchanged and righteous.
The
attitudes and practices adopted by China and US on the bilateral trade issue
reflect their differences in credibility and morality.
The
trade friction provoked by the US hurts the interests of both the two countries
and the world. The US has backtracked on its commitments in the China-US
economic and trade consultations, while China is committed to credible
consultations based on equality and mutual benefit.
The
intentions of the trade friction initiator can’t be more obvious. Trumpeting
“America First”, the current US administration has adopted a series of
unilateral and protectionist measures, regularly wielded tariffs as a “big
stick” and coerced other countries into accepting its demands.
The US
has initiated the Sections 201, 232 and 301 investigations against its main
trading partners including China, causing disruption to the global economic and
trade landscape.
Turning
a blind eye to the nature of the economic structure and the stage of
development in China and the US, as well as the reality of the international
industrial division of labor, the US insists that China’s “unfair” and
“non-reciprocal” trade policies have created a trade deficit in bilateral
commercial exchanges that constitutes “being taken advantage of”, leading to
unilateral imposition of additional tariffs on China.
However,
facts proved that to “make America great again” through hegemony is not only
severe misjudging, but also a serious threat against the peaceful development
of the world.
According
to the white paper, impacted by the trade friction between China and the US, US
exports to China have dropped for eight months in a row, and direct investment
by Chinese companies in the US was $5.79 billion in 2018, down by 10 percent
year-on-year.
The
white paper predicted that US GDP in 2019 and the next four years could
decrease by $64 to 91 billion per year, about 0.3 to 0.5 percent of total US
GDP. If the US imposes 25 percent additional tariffs on all imported Chinese
goods, US GDP will decrease by 1.01 percent, with 2.16 million job losses and
an additional annual burden of $2,294 on a family of four.
That is
what “being taken advantage of” really is. Some US politicians, asking for
troubles, are impeding the development of the world economy. With the outlook
for China-US trade friction unclear, the WTO has lowered its forecast for
global trade growth in 2019 from 3.7 percent to 2.6 percent. Global
organizations such as the World Bank and the International Monetary Fund have
also revised down forecasts for global economic growth in 2019.
In the
era of economic globalization, the highly integrated economies of China and the
US have jointly established a complete industrial chain. Unfortunately, these
two economies, which were interwoven and enjoyed win-win results, are now tortured
by the stupid and distorted trade policies of the US. It has casted a shadow on
the global economy.
Who is
backtracking on commitments? The answer lies in the facts. The US politicians
have been mincing words on the China-US trade issues. At one time they claimed
that an agreement was about to be reached, while later they went back on the
claim, saying the agreement was difficult. They even groundlessly accused China
of “backtracking” on its position.
The
white paper bluntly pointed out the three times when the US backtracked on its
commitments. The US firstly announced an additional tariff of 25 percent on $50
billion of Chinese exports to the US because of false accusations. Then it tore
up the consensus just ten days after a joint statement was reached, while
announcing the resumption of the tariff program, which led to quick escalation
of the economic and trade friction between the two countries.
Later,
when the two countries had agreed on most of the issues, the US persisted with
exorbitant demands, maintained the additional tariffs imposed since the
friction began, and insisted on including mandatory requirements concerning
China’s sovereign affairs in the deal.
China,
sticking to justice and equality, will never surrender to the fully-revealed hegemonic
attitude and extreme pressure of the US. China’s position has been consistent
and clear – that cooperation serves the interests of the two countries, that
conflict can only hurt both, and that cooperation is the only correct choice
for both sides.
Concerning
their differences and frictions on the economic and trade front, China is
willing to work together with the US to find solutions, and to reach a mutually
beneficial and win-win agreement.
It has
been proved again and again both in history and at present that those who chase
after hegemony will only be isolated.
The
unilateral and arbitrary practices of the US have received broad criticism
across the world. A national leader from Europe recently said that “More than
ever, our way of thinking and our actions have to be multilateral rather than
unilateral.”
Besides,
the international community also made other voices of condemnation such as the
US showed no respect to international order, and the US would receive no
support by violating WTO rules and damaging the multilateral trading system.
The US
administration is now aiming to stop China's development, which could prove to
be disastrous for both the US and the entire world, remarked American economist
Jeffrey Sachs.
At the
2019 Shangri-La Dialogue, Prime Minister Lee Hsien Loong of Singapore noted
that even short of outright conflict, a prolonged period of tension and
uncertainty will be extremely damaging.
The
above voices reflect the desperate need of the global people to safeguard peace
and prosperity of the world.
China
has always been a country that strictly adheres to moral principles and dares
to shoulder responsibilities. While it is safeguarding national dignity and
people’s interests, it is also creating every possibility for world countries
to achieve win-win cooperation.
The
white paper once again declares that the Chinese government rejects the idea
that threats of a trade war and continuous tariff hikes can ever help resolve
trade and economic issues.
Guided
by a spirit of mutual respect, equality and mutual benefit, the two countries
should push forward consultations based on good faith and credibility in a bid
to address issues, narrow differences, expand common interests, and jointly
safeguard global economic stability and development.
The
prospects for win-win cooperation can and should be created. The two countries
should look forward rather than looking back on the general direction of the
China-US economic and trade consultations.
Only by
meeting each other halfway, and jointly advancing China-US relations based on
coordination, cooperation and stability, can the two countries conform to the
common aspiration of the world and enhance the well-being of both nations and
the world.
(Zhong
Sheng is a pen name often used by People's Daily to express its views on
foreign policy.)
US government should bear sole, entire responsibility for severe setback to China-US economic and trade consultations
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