Principles for Cooperation and Bottom Lines in Consultation

On June 2, 2019, China’s State Council Information Office held a press conference and issued a white paper titled China’s Position on China-U.S. Economic and Trade Consultations. It was the second white paper following The Facts and China’s Position on China-U.S. Trade Friction that was issued in September 2018 after the U.S. unilaterally provoked trade friction in February 2018. With a solid foundation of concrete data, the white paper provides a comprehensive outline of China-U.S. economic and trade consultations to ensure correct understanding of the facts, which drew massive attention worldwide.

First, the white paper aims to shine light on the truth. Since the beginning of China-U.S. economic and trade consultations in February 2018, consultations have been carried out behind closed doors to avoid external interference and remained highly confidential. However, before the 11th round of high-level China-U.S. economic and trade consultation was held in May 2019, the Trump administration unilaterally announced it would raise tariffs on US$200 billion worth of imports from China up to 25 percent from 10 percent. Later, the U.S. government blamed China for the setbacks and inconclusive talks and accused China of backtracking on its position. Considering the array of misinformation spewing from Washington, the Chinese government had no choice but to publish the white paper to show to the international community that setbacks in the consultations were the result of the U.S. breaching consensus and commitments as well as its own backtracking.  

Second, the white paper illustrates the nature of the trade war launched by the U.S. on China: It harms others and does not provide any benefits for itself. To win over voters to support its trade war against China, the Trump administration claimed that the trade war will completely reverse the situation that China’s “unfair” and “non-reciprocal” trade policies have created a trade deficit in bilateral commercial exchange that constitutes “being taken advantage of.” To pacify domestic interest groups suffering from the trade war, the U.S. government claimed that China would bear the worst consequences despite overwhelming evidence to the contrary. The facts and figures from the China-U.S. trade friction over the past year irrefutably show that there is no winner in this trade war. The trade war unilaterally provoked by the U.S. side has dragged down global economic growth, seriously disrupted global industrial and supply chains, and seriously and negatively impacted U.S. businesses, consumers and economic growth. Even officials from the Trump administration have admitted that the price for the trade war is primarily being paid by U.S. businesses and consumers. The white paper shines light on the hypocrisy of the U.S. government and exposes its lies.

Finally, the white paper reiterates the clear and firm position of the Chinese government. Since the establishment of China-U.S. diplomatic ties some 40 years ago, economic and trade relations between the two countries have experienced many difficulties of one kind or another. However, under sound guidance from top leaders of both sides, the China-U.S. commercial relationship has started serving as both the ballast and the propeller of the overall bilateral relationship. The Chinese government attaches great importance to the development of China-U.S. economic and trade relations and is willing to do everything possible to maintain hard-won achievements. China does not want a trade war. However, cooperation must be based on principles, and there are bottom lines in consultation. China is not afraid of a trade war with the U.S. Consultation should be based on mutual respect, equality and mutual benefit. Consultation involves working toward the same goal. Negotiations will go nowhere if one side tries to coerce the other or if only one party will benefit from the outcomes.

The Office of the U.S. Trade Representative and the U.S. Department of Treasury released a statement in response to China’s white paper, which is far from persuasive and full of empty talk. China’s current economic achievements are not a gift from others. It comes from the hard work and unremitting effort of all Chinese people. Against a backdrop of rising trade protectionism and unilateralism globally, China, as the world’s largest developing country and second largest economy, will assume responsibility rather than stepping back from difficulties. It will continue its institutional and structural reform and opening up as it contributes to the construction of a community with a share future for humanity.  

The author is deputy director of the Department of External Affairs, China Center for International Economic Exchanges (CCIEE).