Xinhua News Agency, Beijing, September 24th: The State Council Information Office released a white paper on the 24th, “The Facts and China’s Position on Sino-US Economic and Trade Frictions.” The full text is as follows:
Facts and China’s position on Sino-US economic and trade frictions
(September 2018)
People’s Republic of China
State Council Information Office
Table of Contents
Foreword
1. China-US economic and trade cooperation is mutually beneficial and win-win
2. Facts about Sino-US economic and trade relations
3. The U.S. government’s trade protectionist behavior
4. The US government’s trade bullying behavior
5. The harm caused by the improper practices of the U.S. government to world economic development
6. China’s position
Foreword
China is the largest developing country in the world, and the United States is the largest developed country in the world. Sino-US economic and trade relations are of great significance to both countries and have a decisive impact on global economic stability and development.
Since the establishment of diplomatic relations between China and the United States, bilateral economic and trade relations have continued to develop, and the points of convergence of interests have continued to increase, forming a close cooperative relationship that has not only benefited both countries, but also benefited the world. Especially since the beginning of the new century, in the process of rapid economic globalization, China and the United States have followed bilateral agreements and multilateral rules such as the World Trade Organization, expanded and deepened economic and trade cooperation, and formed a highly complementary structure and deep interest based on comparative advantages and market selection. A mutually beneficial and win-win relationship. By complementing each other’s advantages and exchanging what they need, the two sides have effectively promoted their respective economic development and industrial structure optimization and upgrading. At the same time, they have improved the efficiency and effectiveness of the global value chain, reduced production costs, enriched product types, and greatly promoted the development of enterprises and consumers in both countries. interests.
China and the United States are at different stages of economic development and have different economic systems. It is normal for economic and trade frictions to exist. The key is how to enhance mutual trust, promote cooperation, and manage differences. For a long time, the two governments have established communication and coordination mechanisms such as the China-U.S. Joint Commission on Commerce and Trade, the Strategic Economic Dialogue, the Strategic and Economic Dialogue, and the Comprehensive Economic Dialogue in line with the principles of equality, rationality, and working toward each other. Unremitting efforts have ensured that Sino-US economic and trade relations have overcome various obstacles and continued to move forward in the past 40 years, becoming the ballast and propeller of Sino-US relations.
Since the new U.S. government took office in 2017, under the slogan of “America First,” it has abandoned basic norms of international exchanges such as mutual respect and equal consultation, and implemented unilateralism, protectionism, and economic hegemony, which has affected many countries and regions, especially China has made a series of false accusations, used means such as increasing tariffs to carry out economic intimidation, and tried to use extreme pressure to impose its own interests on China. Faced with this situation, China proceeds from safeguarding the common interests of the two countries and the overall world trade order, adheres to the basic principle of resolving disputes through dialogue and consultation, responds to the concerns of the United States with the utmost patience and sincerity, properly handles differences with an attitude of seeking common ground while reserving differences, and overcomes differences between all parties. We have carried out multiple rounds of dialogue and consultations with the United States to propose pragmatic solutions and made arduous efforts to stabilize bilateral economic and trade relations. However, the United States has gone back on its word and continued to launch attacks, which has led to the continuous escalation of Sino-US economic and trade frictions in a short period of time, which has greatly damaged the Sino-US economic and trade relations that the two governments and people have worked hard to cultivate for many years, and also put the multilateral trading system and free trade principles at risk. serious threat.
In order to clarify the facts of Sino-US economic and trade relations, clarify China’s policy stance on Sino-US economic and trade frictions, and promote reasonable resolution of the issue, the Chinese government has issued this white paper.
1. China-US economic and trade cooperation is mutually beneficial and win-win
Since the establishment of diplomatic relations between China and the United States, bilateral economic and trade relations have continued to develop, and cooperation in trade and investment has achieved fruitful results, achieving complementary advantages and mutual benefits. China has benefited greatly from it, and the United States has also gained extensive and huge economic benefits from it, sharing the opportunities and results brought by China’s development. Facts have proved that good Sino-US economic and trade relations are of great significance to the development of both countries. Cooperation will benefit both countries, while conflict will hurt both countries.
(1) China and the United States are each other’s important goods trading partners
Bilateral trade in goods has grown rapidly. According to statistics from relevant Chinese departments, the bilateral trade volume in goods between China and the United States reached US$583.7 billion in 2017, 233 times that of 1979 when diplomatic relations were established, and more than seven times that of 2001, when China joined the World Trade Organization. Currently, the United States is China’s largest export market for goods and sixth largest source of imports. In 2017, China’s exports to the United States and imports from the United States accounted for 19% and 8% of China’s exports and imports respectively; China is the fastest growing export market of the United States. market and the largest source of imports. In 2017, U.S. exports to China accounted for 8% of U.S. exports.
The growth rate of U.S. exports to China is significantly faster than its exports to the world. Since China joined the World Trade Organization, U.S. exports to China have grown rapidly, and China has become an important export market for the United States. According to United Nations statistics, U.S. exports of goods to China in 2017 were US$129.89 billion, an increase of 577% from US$19.18 billion in 2001, which was much higher than the 112% growth rate of US exports to the world during the same period (Figure 1).
China is the largest producer of U.S. aircraft, agricultural products, automobiles, and integrated products.Unify standards and accelerate the modernization of the intellectual property trial system and trial capabilities. China is willing to strengthen cooperation in intellectual property protection with other countries around the world, and also hopes that foreign governments will strengthen the protection of China’s intellectual property rights. China advocates resolving intellectual property disputes through legal means and opposes any country’s practice of trade protectionism in the name of protecting intellectual property rights.
(5) China firmly protects the legitimate rights and interests of foreign businessmen in China
China will strive to build an open and transparent foreign-related legal system, continuously improve the business environment, and provide better and higher-quality services for companies from all over the world to invest and operate in China. China respects international business practices, abides by World Trade Organization rules, and treats companies registered in China equally. China encourages all types of market entities, including foreign-invested enterprises, to carry out various forms of cooperation and is committed to creating a market environment for equal competition. The Chinese government pays close attention to the legitimate concerns of foreign investors and is willing to respond to and work hard to solve the specific problems reported by enterprises. China has always insisted on protecting the legitimate rights and interests of foreign investors and their investment enterprises in China, and will resolutely punish any infringement of the legitimate rights and interests of foreign businessmen in accordance with the law.
(6) China is determined to deepen reform and expand opening-up
Reform and opening up is China’s basic national policy and the fundamental driving force for China’s development. The direction of China’s reform will not be reversed, but will only continue to deepen. China’s door to opening up will not close, but will only open wider and wider. China continues to follow the established deployment and rhythm, unswervingly deepen reform, expand opening up, comprehensively promote the rule of law, and build a socialist country under the rule of law. China insists on giving full play to the decisive role of the market in resource allocation, giving better play to the role of the government, encouraging competition and opposing monopoly. China, like other countries in the world, has the right to choose its own development path, including its economic model, based on its own national conditions. As a developing country, China is not perfect. It is willing to learn from advanced experience and constantly improve its systems, mechanisms and policies through reform and opening up. China will effectively handle its own affairs, firmly implement the innovation-driven development strategy, accelerate the construction of a modern economic system, and promote high-quality economic development. China is willing to share its new development opportunities with other countries around the world. China will implement high-level trade and investment liberalization and facilitation policies, fully implement the pre-establishment national treatment plus negative list management system, significantly relax market access, expand the opening of the service industry to the outside world, further reduce tariffs, and build a transparent, efficient, and fair market environment, develop a higher-level open economy, create a more attractive investment environment, and develop and share prosperity with all countries in the world that pursue progress.
(7) China firmly promotes mutually beneficial and win-win cooperation with other developed countries and developing countries
China will work with the EU to speed up negotiations on the China-EU investment agreement and strive to reach an agreement as soon as possible. On this basis, China will put the issue of the China-EU Free Trade Area on the agenda. China will speed up the negotiation process of the China-Japan-ROK Free Trade Area and promote the early conclusion of the “Regional Comprehensive Economic Partnership Agreement.” China will further promote the “Belt and Road” international cooperation, adhere to the principle of extensive consultation, joint contribution and shared benefits, and strive to achieve policy coordination, infrastructure connectivity, unimpeded trade, financial integration, and people-to-people bonds, so as to add new impetus for common development.
(8) China firmly promotes the building of a community with a shared future for mankind
Faced with a series of severe challenges facing human development, all countries in the world, especially the major powers, must shoulder the responsibility of leading and promoting international cooperation, respect each other, negotiate on an equal footing, resolutely abandon the Cold War mentality and power politics, and do not engage in a situation where you win, you lose, and I win. It is a zero-sum game. It does not engage in beggar-thy-neighbor and bullying by strong powers. It properly manages conflicts and differences. It insists on resolving disputes through dialogue and resolving differences through consultation. It uses exchanges among civilizations to transcend estrangement, mutual learning among civilizations to transcend clashes of civilizations, and coexistence among civilizations transcends superiority. China will continue to play its role as a responsible major country and work with other countries to build a world of lasting peace, universal security, common prosperity, openness, inclusiveness, cleanness and beauty.
Moral support from many, scant support. In the face of an international situation characterized by increasing uncertainty, instability and insecurity, China remains true to its original aspiration and has always walked with the world. It has followed the general trend, upheld justice and pursued the right path, unswervingly safeguarding the multilateral trading system and unswervingly promoting the reform of the global governance system. We must always be a builder of world peace, a contributor to global development, and a defender of the international order, and unswervingly promote the building of a community with a shared future for mankind.
