There is no winner in the trade war, and escalating friction cannot solve economic and trade problems. If someone always tries to force China to submit by escalating economic and trade frictions, it is doomed to failure. It is impossible for China to give in to extreme pressure, which is inevitable regardless of anyone’s will.
On the 30th, People’s Daily published an article signed by Zhong Ling, "Upgrading friction doesn’t help", which once again refuted the US’s actions of escalating economic and trade frictions.
The article said that it is never difficult to find the information of "collision" between China and the United States by observing the economic and trade frictions. The contest between rationality and irrationality has become the most obvious feature of Sino-US economic and trade friction.
On August 28th, local time, the US government once again announced that it would impose tariffs on China goods in stages. On the same day, the American Free Trade Union, composed of more than 160 American business organizations, jointly sent a letter to American leaders, demanding that all tariffs imposed on China goods be postponed immediately.
Through one round after another, piles of question marks are placed in front of people: what is the problem that some people in the United States want to solve? Where is the solution? Some people in the United States are determined not to go back to the right track. What do they want? … … Reason tells the world that threatening to increase tariffs and escalating economic and trade frictions will not only help solve Sino-US economic and trade problems, but also create new difficulties for solving them.
On the morning of August 30th, at the "Seminar on China’s Practice of International Rule of Law" held by the Institute of International Law of Wuhan University, the participating experts also made an in-depth interpretation of the actions of some Americans to initiate and escalate economic and trade frictions. The participating experts believed that the actions of these Americans seriously violated the rules of international law, including the rules of the World Trade Organization (WTO), and undermined the international rule of law and international trade order. Since China joined the WTO, it has been fully fulfilling its commitments. In the face of unwarranted accusations and trade frictions provoked by some Americans, the countermeasures taken by China are fully based on international law. China firmly supports the multilateral trading system, resolutely opposes unilateralism and hegemonism, and is a staunch defender and builder of the international rule of law.
The origin of economic and trade friction seems to be that some people in the United States regard the trade deficit as an absolute threat, and only the inflow of dollars is fair. But after a fight, where did the dollar go? With the increase in tariffs and rising prices, the dollars in the pockets of the American people are flowing out endlessly. The article published on the US Foreign Policy website also gives a new perspective: "What is little known is that it is not trade, but China’s investment in the United States." Agence France-Presse reported that US tariffs on goods from China will not solve the trade deficit problem.
On the 29th, the U.S. Department of Commerce announced that it would lower the GDP growth rate in the second quarter of this year. According to the analysis, this is because the American economy is impacted by the uncertainty of its trade policy. At the same time, several trade associations in the United States have issued appeals in recent days to urge the US government to lift tariffs on China.
According to the revised data released by the US Department of Commerce, in the second quarter of this year, the real GDP of the United States increased by 2% at an annual rate, which was 0.1 percentage point lower than the first estimated value previously announced, and also lower than the 3.1% in the first quarter. Analysts believe that due to the impact of trade policy and its uncertainty on the US economy, and the stimulating effect of tax cuts has basically disappeared, the US economic growth will slow down or become a foregone conclusion this year. It is estimated that the annual growth rate will be about 2.5%, which is lower than the 3% growth target set by the government.
The National Taxpayers’ Union of the United States issued a document in its official website on the 29th, pointing out that the US trade policy has been in deep trouble, and imposing tariffs on China is not only ineffective, but also eats into the US economy.
More than 200 footwear manufacturers and retailers in the United States sent a letter to the US government on the 28th, saying that the tariff increase would cost American consumers 4 billion dollars more each year, further increasing the risk of economic recession. According to reports, at present, the average tariff rate of shoes imported from China in the United States is 11%. After the United States further imposes tariffs, the tariff rate of some shoes will be as high as 67%.
At the same time, about 160 trade associations, including the National Retail Association of the United States and the Machinery Manufacturing Association, also issued an appeal on the 28th, demanding that the US government postpone the policy of imposing tariffs on goods exported from China to the United States. The letter pointed out that increasing tariffs will hurt American workers and consumers and adversely affect the overall economic situation in the United States.
According to the "2019 Annual Member Survey" released by u.s.-china business council on the 29th, the vast majority of American enterprises have made profits by operating in China, and China is still the priority market for most enterprises interviewed. According to this survey report, 97% of American companies surveyed made profits in China in 2019, which was the same as last year and remained at a high level in 10 years.
On 30th, Economic Daily published a commentary article, "China Market" is our confidence to meet the challenge.
The article points out that where the business environment is good, enterprises will invest there. This is a market economy and an economic law. It will be normal for China consumers to have huge demand for high-quality products, for China’s increasing purchasing power, and for China’s expanding market potential. This is the charm of China’s economy, and it is also the basis for us to meet all challenges.
What we have to emphasize repeatedly is that mutual benefit and win-win is the choice that conforms to the trend of the times. To solve the economic and trade problems between China and the United States, we must focus on the common interests of both sides, show sincerity and actions to solve the problems, and effectively create conditions for the two sides to negotiate on the basis of equality and mutual respect, instead of going further and further on the wrong road. China has always believed that consultation and cooperation with a calm attitude is the correct way to truly solve the problem. This rational power is welcomed by the people of China and the United States and the people of the world.
