U.S. breaking promises is setting new obstacles for trade talks with China
By Zhong
Sheng
The 12th
round of the China-U.S. high-level economic and trade consultations concluded
at the end of July, and the negotiating teams of the two countries agreed to
intensify trade consultations in August to prepare for the meetings of chief
trade negotiators from both sides in September.
However,
the U.S. had a sudden turnabout and unilaterally claimed to impose an
additional 10 percent tariff on $300 billion worth of Chinese imports starting
from September 1.
This
move goes against the consensus reached by the heads of state of the two
countries during their meeting in Osaka, Japan, posing serious problem to the
trade talks.
In fact,
it was not the first time that the U.S. went back on its own words and
challenged the fundamental norms of international relations.
On June
29, the U.S. promised in Osaka that it would not add new tariffs on Chinese
goods, which was regarded as quite a relief for the international market.
However,
on August 1, just 27 hours after the White House published a statement
acknowledging the 12th round of China-U.S. high-level economic and trade
consultations as “constructive” meetings, the U.S. once again picked up the big
stick of tariffs and wielded it against China.
The U.S.
decision hurt the confidence of the international market, causing a sharp fall in the
American stock markets that further led to a slump in global stocks
- obviously an inevitable consequence of the arbitrary and capricious acts of
some American officials.
Evidently,
these American officials are anxious about the economic problems their country
is currently facing.
According
to the latest data released by the U.S. Department of Commerce, U.S. GDP grew
at a 2.1 percent annualized rate in the second quarter this year, slower than
the 3.1percent figure in the first quarter, signaling insufficient drivers of
economic growth.
In addition, the
economic and trade frictions with China also aggravated the vulnerability of
U.S. agricultural products in global market.
A drowning man
will clutch at a straw, but he should never blame the others for his own awkward
situation.
To every
economy in the world, the global market, which is interdependent and
coordinated, is like an ecological system. In such system, any act that runs
counter to the fundamental laws will lead to catastrophic results. This also
applies to the global market.
The
uncertainties created by the additional tariffs would inevitably shatter the
confidence and ecology of the market. Under such circumstances, no enterprise
will take the risk to place orders of American products without hesitation.
China is
a market economy where whether to increase imports from the U.S. is ultimately decided
by the market entities, as market behavior is determined by market conditions and expectations.
The crux
of the current problem is that the U.S. side keeps reneging on its word, making
trade a dangerous game for marker buyers who dare not to make a purchase.
Obviously,
to boost the Chinese purchases of U.S. products, Washington should faithfully
safeguard the order and stability of the market, rather than waving the big
stick of tariffs.
The tragedy
of the present American agriculture is exactly an outcome of the wrong
decisions made by the U.S., and has nothing to do with other countries.
The
situation was totally different before the China-U.S. trade frictions broke
out. The market was free from destructive interference, and both sides enjoyed
common benefits from the supply chain on which the U.S. generated huge
production and China saw huge demand.
Unfortunately,
it will not be easy to restore this supply chain after it had been severely
impacted. The story indicated the wisdom drew by ancient Chinese 2,000 years
ago - unvarnished truth is better than a cunning ruse.
China
has always regarded the consensus reached between the heads of state of the two
countries as an important guideline for resolving economic and trade issues,
and is willing to actively expand imports according to the demand of domestic
market and its people.
The
two sides have agreed to open market to each other. China will, in the process
of furthering its new round of reform and opening-up, work to gradually resolve
the reasonable concerns of the US side. Work teams of both sides will step up
negotiations toward the removal of all additional tariffs so as to reach a
specific agreement with mutual benefit and win-win results at an early date.
Honoring
promises and following the consensus between China and the U.S. would no doubt
benefit the development of the two countries and the well-being of the two
peoples, and contribute to the stable growth of world economy, which accords
with the interests of various countries.
As
Chinese idioms go that “a promise is weightier than one thousand bars of gold”
and “people should suit their actions to their words”, Chinese people have
always attached great importance to keeping promises and honoring commitments.
“Honesty
is the crux of all standards of conduct.” Such philosophy is deeply rooted in
Chinese culture, and is still cherished by the Chinese people as a defining
principle when it comes to dealing with relationships.
(Zhong
Sheng is a pen name often used by People's Daily to express its views on
foreign policy.)
U.S. breaking promises is setting new obstacles for trade talks with China
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