The State Council Information Office releases the White Paper on China's Position on Some Issues in China-US Economic and Trade Relations.

The State Council Information Office released the White Paper on China's Position on Some Issues in China-US Economic and Trade Relations, clarifying the facts of China-US economic and trade relations and elucidating China's policy positions on related issues. The White Paper is divided into six parts, in addition to the introduction and conclusion, respectively discussing the nature of mutual benefit in China-US economic and trade relations; China's serious implementation of the phase one China-US economic and trade agreement; US violations of obligations under the phase one China-US economic and trade agreement; China's adherence to the principles of free trade and compliance with World Trade Organization rules; the harm caused by unilateralism and protectionism to bilateral economic and trade relations; and the possibility of resolving economic and trade differences through equal dialogue and mutually beneficial cooperation. The White Paper states that since the establishment of diplomatic relations between China and the US 46 years ago, bilateral economic and trade relations have continued to develop, with bilateral trade volume skyrocketing from less than $2.5 billion in 1979 to nearly $688.3 billion in 2024. However, in recent years, US unilateralism and protectionism have risen, severely disrupting normal economic and trade cooperation between China and the US. In response to the US's imposition of high tariffs on over $500 billion worth of Chinese exports since the China-US economic and trade disputes in 2018, China has had to take strong countermeasures to defend its national interests. At the same time, China has consistently adhered to its basic stance of resolving disputes through dialogue and consultation, engaging in multiple rounds of economic and trade negotiations with the US in order to stabilize bilateral economic and trade relations. The White Paper points out that the recent US implementation of additional tariffs on Chinese products under the pretext of issues such as fentanyl, as well as the proposed restrictions on Chinese maritime, logistics, and shipbuilding industries, are unjustifiable and reveal the nature of US typical unilateralism and bullying. Such restrictive measures, which are threats based on tariffs, are not only against market economic principles but also run counter to multilateralism, seriously impacting China-US economic and trade relations. China has taken necessary countermeasures based on basic principles of international law and regulations. In the midst of this, China has always believed that the essence of China-US economic and trade relations is mutual benefit and win-win cooperation. As two large countries at different stages of development and with different economic systems, it is normal for China and the US to encounter differences and frictions in economic and trade cooperation. The key is to respect each other's core interests and major concerns and find proper solutions through dialogue and consultation. There are no winners in a trade war, and protectionism leads nowhere. The success of both China and the US is an opportunity for each other, not a threat. China hopes that the US will work together with China in accordance with the directions set out by the two countries' leaders, adhering to the principles of mutual respect, peaceful coexistence, and win-win cooperation, resolving concerns through equal dialogue and consultations and jointly promoting the healthy, stable, and sustainable development of China-US economic and trade relations.Further upgrading trade and economic restriction measures, China has firm determination and abundant means, and will resolutely counteract and accompany to the end.As two major countries at different stages of development and with different economic systems, it is normal for China and the United States to have differences and friction in economic and trade cooperation. The key is to respect each other's core interests and major concerns, and to properly resolve differences through equal dialogue. It is hoped that the US and China will work towards each other, follow the direction indicated in the telephone conversation between the leaders of the two countries, and act in accordance with the principles of mutual respect, peaceful coexistence, and win-win cooperation. It is necessary to immediately cancel unilateral tariff measures, strengthen dialogue, manage differences, and promote cooperation. China is willing to exchange views with the US on important issues in the economic and trade fields, resolve respective concerns through equal dialogue and consultation, and jointly promote the stable, healthy, and sustainable development of China-US economic and trade relations. Q: How does China view the US practice of unilaterally imposing tariffs on trade partners, including China? A: The relevant actions of the US violate basic economic laws and market principles, violate WTO rules, undermine the multilateral trading system, disregard the balance of benefits reached in multilateral trade negotiations, and ignore the fact that the US has long profited greatly from international trade. The US uses tariffs as a weapon to implement extreme pressure and seek personal gain. This is typical unilateralism, protectionism, and economic bullying. Under the guise of "equality" and "fairness," the US is engaging in zero-sum game. Ultimately, it is pursuing "America First" and "America's Special." It aims to subvert the existing international economic and trade order using tariff measures, prioritize US interests over the common interests of the international community, sacrifice the legitimate interests of countries around the world, serve US hegemonic interests, artificially cut off the mature global supply chain and industrial chain, disrupt market-oriented free trade rules, seriously interfere with the economic development of countries, affect long-term stability and growth of the world economy, and face widespread opposition from the international community. There is also significant domestic opposition in the US. History and facts have shown that increasing tariffs will not solve its own problems. Instead, it will lead to severe fluctuations in the financial market, increase inflationary pressures in the US, weaken the industrial base, and increase the risk of economic recession, ultimately resulting in self-harm. Q: The US believes that the huge trade deficit makes the US "lose." What is China's comment on this? A: The trade surplus between China and the US is both a result of structural problems in the US economy and determined by the comparative advantages of the two countries and the international division of labor. China does not deliberately pursue a trade surplus. In fact, the ratio of China's current account surplus to GDP has decreased from 9.9% in 2007 to 2.2% in 2024. To objectively assess whether bilateral trade between China and the US is balanced, a comprehensive and in-depth examination is needed, not just looking at the trade surplus in goods. The US has significant advantages in trade in services. The US is the largest source of trade deficit in China's services trade, and the deficit is growing. In 2023, it was about $26.57 billion, accounting for about 9.5% of the total surplus in US services trade. Taking into account trade in goods, trade in services, and the sales of local branches of domestic companies in each other's countries, the overall benefits of bilateral trade between China and the US are roughly balanced. In recent years, the proportion of the trade deficit with China in the total trade deficit has decreased, while the global trade deficit has increased. The fact is that imposing tariffs on China cannot reduce the overall trade deficit of the US; rather, it will lead to increased import costs and further widen the deficit. Actively expanding imports is an important part of China's efforts to promote high-level opening up. Since November 2018, the China International Import Expo has been held annually in Shanghai, with the participation of countries and the amount of intended transactions increasing each year, with a total intended transaction amount exceeding $500 billion. In 2024, China's total imports were 18.4 trillion yuan, a year-on-year increase of 2.3%, setting a new high in import volume, maintaining its position as the world's second-largest import market for 16 consecutive years. China will continue to explore the potential of imports and make the country's super-large-scale market a shared market for the world, injecting new momentum into global economic development. Q: As a member of the World Trade Organization, how does China comply with WTO rules and practice the concept of free trade? A: Since joining the World Trade Organization in 2001, China has actively practiced the concept of free trade, fully implemented its commitments upon accession, complied with and implemented WTO rules, greatly opened its markets, and made positive contributions to maintaining the effectiveness and authority of the multilateral trading system. Firstly, China has improved market-based economic laws and regulations, making compliance assessment a necessary pre-requisite for trade policies, effectively enhancing the stability, transparency, and predictability of trade policy, and building a legal system in line with multilateral trade rules. Secondly, China has effectively implemented tariff reduction commitments upon accession to the WTO, significantly lowering import tariff rates on many occasions. By 2010, China had fulfilled all its commitments to reduce tariffs on goods, reducing the overall tariff level from 15.3% in 2001 to 9.8%, close to the average bound rate of 9.4% for developed members. Thirdly, China strictly adheres to WTO subsidy disciplines and timely submits subsidy notifications to the WTO. In June 2023, China submitted a subsidy policy notification for 2021-2022, covering 69 central and 385 local subsidy policies, achieving full coverage of provincial-level administrative regions. Finally, through systemic reforms that align with international rules, China continues to optimize the business environment, providing a more transparent, fair, and predictable business environment for global companies. This article was originally published by Xinhua News Agency; GMTEight Editor: Lifu.