US economic bullying seriously violates multilateral trade rules

The US side's economic bullying and extreme pressure practices have seriously hindered Sino-US economic and trade negotiations, seriously violated multilateral trade rules, seriously threatened the security of supply chains in global industrial chains, ran counter to market competition principles and basic business ethics, and ran counter to the trend of economic globalization with no winners in the trade war, and all kinds of practices harmful to people and themselves. It will not only have an impact on Chinese enterprises, but also on American enterprises and consumers. It will also have an impact on the world economy.

China's solid material foundation, complete industrial system, huge market size, strong resilience, endogenous power and large swing space for economic development. Despite the intensification of economic and trade frictions between China and the United States, China is still a hot spot for foreign investment. Recently, the United States launched a 25% tariff on about $200 billion of Chinese imports to the United States, and also used national forces to unjustifiably suppress Chinese enterprises. How do we view the escalating trade frictions between China and the United States? What impact will this have on China, the United States and the world economy? Does the Sino-US economic and trade frictions lasting for more than a year have a greater impact on Chinese enterprises and markets? Gao Yan, president of China Council for the Promotion of Trade, was interviewed by reporters recently.

US economic bullying seriously violates multilateral trade rules

Reporter: Recently, the US has been escalating trade frictions, not only pressing forward on the issue of tariff imposition on Chinese imported goods from the United States, but also using national forces to unjustifiably suppress Chinese enterprises. What do you think of it?

Gao Yan: US economic bullying and extreme pressure practices have seriously hindered Sino-US economic and trade negotiations, seriously violated multilateral trade rules, seriously threatened the supply chain security of the global industrial chain, ran counter to the principles of market competition, basic business ethics and the trend of economic globalization. It should be pointed out that one of the excuses for the US tariff increase is the Sino-US trade imbalance. The study shows that the current US statistical method is one-sided, ignoring the impact of trade in services and cross-border investment on trade. The so-called Sino-US trade imbalance is a "false proposition". Using the method of "ownership-based trade surplus", the trade surplus between China and the United States shrank year by year from 2009 to 2017 according to the statistical calibre of the subsidiaries of the two countries'enterprises in the other countries, which was only over 45 billion US dollars in 2017. If the statistical caliber is relaxed to all the enterprises invested by the two countries in each other's countries, there will always be a trade surplus between the United States and China from 2009 to 2017, and the surplus will continue to expand from more than 14 billion US dollars to more than 160 billion US dollars. Economic and trade frictions among countries are not only present, but also past, present and future. Economic and trade frictions exist objectively. The key is how we deal with them. We should not magnify trivial matters, politicize economic issues or even overwhelm people with potential.

We hope that the United States and China will go against each other instead of going against each other. We hope that the United States will listen to us emptily instead of acting alone. We hope that the United States will keep its promise in good faith instead of going against the other. We hope that the United States will return to the right track instead of going astray.

Journalist: How do you evaluate the impact of tariffs imposed by the United States and Canada and the escalating Sino-US economic and trade frictions on China, the United States and the world economy?

Gao Yan: China and the United States play an important role in the world economic development, and they are in different positions in the global industrial chain and value chain. After so many years of development, Sino-US economic and trade cooperation is interdependent and inseparable. The industries of the two countries have formed a community of interests in which you have your own interests and I have your own interests. After the unprovoked suppression of Huawei by the US side, it is an indisputable fact that the share price of American Semiconductor Company has fallen sharply. There is no winner in the trade war and all kinds of harmful practices of the US side will not only affect Chinese enterprises, but also have their own consequences, which will affect American enterprises, American consumers and the world economy. Recently, just after Huawei announced the closure of its factory in the United States, local people protested. The US-China Trade Commission, the National Retail Federation of the United States and other agencies have opposed tariff escalation against China. The latest world economic outlook report issued by OECD argues that the intensification of Sino-US trade disputes could lead to a loss of 0.7% of global GDP between 2021 and 2022, quantified as nearly $600 billion. I always believe that cooperation is the best choice and the only correct choice to solve the problem. Only by adhering to the principles and directions already established by the two sides, and adopting a respectful, rational and pragmatic attitude, strengthening communication and consultation, and promoting win-win cooperation, can China-US economic and trade exchanges and the healthy and stable development of bilateral relations be promoted.

Journalist: Chinese enterprises are more confident and calm in dealing with economic and trade frictions.

Reporter: In your opinion, does the Sino-US economic and trade frictions lasting more than one year have a greater impact on Chinese enterprises and Chinese market?

Gao Yan: China has a solid material base, a complete industrial system, a huge market, a strong endogenous power and a large swing space for economic development. Over the past year, Chinese enterprises have gained experience in dealing with Sino-US economic and trade frictions, and their comprehensive competitiveness, risk resistance and ability to explore overseas markets have been further enhanced.

A survey conducted by the China Council for the Promotion of Trade in the southeastern coastal areas shows that Chinese enterprises should be more confident and calm in the face of the sudden escalation of Sino-US economic and trade frictions. The export of some enterprises is not a single American market. The United States is an important market, but there are other markets such as the European Union, Southeast Asia, Latin America and so on. That is to say, the East is not bright, the West is bright.