[Focus] The White Paper "China'S Position On Several Issues Of Sino US Economic And Trade Relations" Was Released

　　 The Information Office of the State Council issued a white paper on China's Position on Several Issues of Sino US Economic and Trade Relations

On the 9th, the State Council Information Office released the white paper "China's Position on Several Issues of Sino US Economic and Trade Relations", clarifying the facts of Sino US economic and trade relations and clarifying China's policy position on related issues.

In addition to the preface and conclusion, the white paper is divided into six parts, namely, the essence of Sino US economic and trade relations is mutual benefit and win-win; The Chinese side earnestly implements the first phase of the Sino US economic and trade agreement; The US side violated the relevant obligations of the first phase of the Sino US economic and trade agreement; China practices the concept of free trade and earnestly abides by the rules of the World Trade Organization; Unilateralism and protectionism damage the development of bilateral economic and trade relations; China and the United States can resolve economic and trade differences through equal dialogue and mutually beneficial cooperation.

According to the white paper, since the establishment of diplomatic relations 46 years ago, bilateral economic and trade relations have been developing continuously. China US trade volume jumped from less than 2.5 billion US dollars in 1979 to nearly 688.3 billion US dollars in 2024. However, in recent years, the rise of U.S. unilateralism and protectionism has seriously interfered with the normal economic and trade cooperation between China and the United States. Since the Sino US economic and trade friction in 2018, the United States has imposed high tariffs on Chinese products exported to the United States that exceed $500 billion, and has continued to introduce containment and suppression policies against China. China has to take strong countermeasures to resolutely safeguard national interests. At the same time, China has always adhered to the basic position of resolving disputes through dialogue and consultation, carried out multiple rounds of economic and trade consultations with the United States, and worked hard to stabilize bilateral economic and trade relations.

The white paper pointed out that the US side has recently released the "US First" trade and investment policy memorandum and the executive summary of the "US First" trade policy report, comprehensively imposing additional tariffs on Chinese products, including the imposition of additional tariffs on China, the imposition of "equivalent tariffs" and the further imposition of 50% tariffs on fentanyl and other issues, as well as on China's maritime The logistics and shipbuilding industries proposed 301 investigation restrictions such as collecting port fees. These restrictive measures, which threaten and threaten with tariffs and others, are more wrong than wrong, exposing once again the essence of the typical unilateralism and hegemonism of the United States. They are not only against the laws of the market economy, but also run counter to multilateralism, and will have a serious impact on the economic and trade relations between China and the United States. China has taken necessary countermeasures in accordance with the basic principles of international law and laws and regulations.

The white paper said that China always believes that the essence of China US economic and trade relations is mutual benefit and win-win results. As two major countries with different development stages and economic systems, it is normal for China and the United States to have differences and frictions in economic and trade cooperation. The key is to respect each other's core interests and major concerns, and find appropriate solutions to problems through dialogue and consultation. There is no winner in the trade war, and protectionism has no way out. The success of China and the United States is an opportunity rather than a threat to each other. It is hoped that the United States and China will move in the opposite direction, follow the direction indicated by the two heads of state in their communication, and solve their respective concerns through equal dialogue and consultation based on the principles of mutual respect, peaceful coexistence and win-win cooperation, so as to jointly promote the healthy, stable and sustainable development of China US economic and trade relations. (Reporter: Xie Xiyao, Wang Yuxiao)

　　 The relevant responsible person of the Ministry of Commerce answered the reporter's questions on the white paper "China's Position on Some Issues of Sino US Economic and Trade Relations"

On April 9, the Information Office of the State Council issued a white paper entitled "China's Position on Several Issues of Sino US Economic and Trade Relations". The relevant person in charge of the Ministry of Commerce answered questions from reporters on the background and main contents of the white paper, as well as China's position on China US economic and trade relations.

Q: What is the background and main content of the white paper "China's Position on Several Issues of Sino US Economic and Trade Relations"?

A: Recently, on the basis of two additional tariffs totaling 20% on fentanyl, the United States has imposed 34% of the so-called "equivalent tariff" on China, and further imposed 50% of the tariff. The United States is still discussing the cancellation of China's permanent normal trade relationship status, and has proposed restrictive measures for the imposition of port charges on China's maritime, logistics and shipbuilding 301 investigations. China firmly opposes these unilateral and hegemonic restrictive measures, and has resolutely taken countermeasures to safeguard its own rights and interests in accordance with the basic principles of international law and laws and regulations.

Against this background, China issued the white paper "China's Position on Several Issues of Sino US Economic and Trade Relations", which aims to clarify the facts of Sino US economic and trade relations, systematically explain China's policy position on issues related to Sino US economic and trade relations, clarify the damage of unilateralism and protectionism to Sino US bilateral economic and trade relations, and show that China firmly upholds national interests We will firmly uphold the multilateral trading system.

The full text of the white paper is 28000 words, which consists of three parts: the preface, the body and the concluding remarks. The text includes six parts, namely, "the essence of Sino US economic and trade relations is mutual benefit and win-win", "the Chinese side earnestly fulfills the first phase of the Sino US economic and trade agreement", "the US side violates the relevant obligations of the first phase of the Sino US economic and trade agreement", "China practices the concept of free trade and earnestly observes the rules of the World Trade Organization", "unilateralism and protectionism damage the development of bilateral economic and trade relations" "China and the United States can resolve economic and trade differences through equal dialogue and mutually beneficial cooperation.".

Q: What is China's basic position on China US economic and trade relations?

A: China US economic and trade relations are an important part of China US relations. As the largest developing country and the largest developed country in the world, China and the United States have strong complementarity in natural endowments, human resources, markets, capital, technology and other fields, and can fully achieve mutual benefit and win-win results. China US economic and trade relations are of great significance to both countries and have an important impact on global economic stability and development.

The essence of China US economic and trade relations is mutual benefit and win-win results. Since the establishment of diplomatic relations 46 years ago, bilateral economic and trade relations have developed rapidly. China US trade volume jumped from less than 2.5 billion US dollars in 1979 to nearly 688.3 billion US dollars in 2024. The two-way investment stock exceeded 260 billion US dollars. The scope and level of China US economic and trade cooperation have been continuously expanded and improved, making important contributions to the economic and social development and the well-being of the people of the two countries. The success of China and the United States is an opportunity rather than a threat to each other.

However, in recent years, unilateralism and protectionism of the United States have risen, and economic and trade restrictions such as tariffs have been introduced to China, seriously interfering with the normal economic and trade cooperation between China and the United States. China has to take legitimate countermeasures. I want to emphasize that there is no winner in the trade war, and China is unwilling to fight a trade war, but the Chinese government will never let the legitimate rights and interests of the Chinese people be damaged and deprived. If the United States insists on further upgrading economic and trade restrictions, China has a firm will and abundant means, and will resolutely oppose and accompany to the end.

As two major countries with different development stages and economic systems, it is normal for China and the United States to have differences and frictions in economic and trade cooperation. The key is to respect each other's core interests and major concerns, and properly resolve differences through equal dialogue. It is hoped that the United States and China will move in the opposite direction, in accordance with the direction indicated by the two heads of state in their communication, and in line with the principles of mutual respect, peaceful coexistence, and win-win cooperation, we will immediately eliminate unilateral tariff measures, strengthen dialogue, manage differences, and promote cooperation. China is willing to communicate with the United States on important issues in the economic and trade fields of the two countries, address their 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 unilateral imposition of tariffs by the United States on its trading partners, including China?

A: The relevant practices of the US side violate basic economic laws and market principles, WTO rules, impact the multilateral trading system, ignore the balance of interests reached in multilateral trade negotiations, and ignore the fact that the United States has benefited a lot from international trade for a long time. The US side uses tariffs as a weapon to exert extreme pressure and seek personal gains, which is a typical act of unilateralism, protectionism and economic hegemony.

Under the so-called banner of "reciprocity" and "fairness", the United States is engaged in zero sum game. In essence, it is pursuing "the United States first" and "the United States special". It is subverting the existing international economic and trade order by means of tariffs, putting the interests of the United States above the public interests of the international community, and serving the interests of the United States hegemony at the expense of the legitimate interests of countries all over the world, Artificially cutting off the original mature global supply chain industrial chain, breaking the market-oriented free trade rules, seriously interfering with the economic development of various countries, affecting the long-term stable growth of the world economy, has been widely opposed by the international community, and there are also great opposition voices in the United States.

History and facts have proved that the United States cannot solve its own problems by raising tariffs. Instead, it will cause sharp fluctuations in the financial market, push up inflation pressure in the United States, weaken the industrial base of the United States, and increase the risk of economic recession in the United States. In the end, it will only eat its own fruit.

Q: The US believes that the huge trade deficit has made the US "suffer". What is China's comment on this?

A: The Sino US trade balance in goods is not only the inevitable result of the structural problems of the US economy, but also determined by the comparative advantages of the two countries and the pattern of international division of labor. China does not deliberately pursue surplus. In fact, the ratio of China's current account surplus to GDP has dropped from 9.9% in 2007 to 2.2% in 2024.

To objectively understand and evaluate whether the bilateral trade between China and the United States is balanced, a comprehensive and in-depth study is needed, not just the trade balance of goods. The United States has a significant advantage in trade in services. The United States is the largest source of China's trade deficit in services, and the overall scale of the deficit shows an expanding trend. In 2023, it will be 26.57 billion US dollars, accounting for about 9.5% of the total US trade surplus in services. Considering the three factors of trade in goods, trade in services and local sales of domestic enterprises in the other country's branches, the economic and trade exchanges between China and the United States have roughly balanced benefits.

In recent years, the U.S. deficit with China has declined in proportion to the overall trade deficit, and the size of the global deficit has climbed. Facts have proved that the imposition of tariffs on China, instead of reducing the overall trade deficit of the United States, has led to an increase in the import costs of the United States and further expanded 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 in Shanghai every year. The participating countries and the amount of intended transactions have increased year by year, and the cumulative amount of intended transactions has exceeded 500 billion dollars. In 2024, China's total imports will be 18.4 trillion yuan, an increase of 2.3% year on year. The scale of imports will hit a record high, and it will remain the world's second largest import market for 16 consecutive years. China will continue to tap the import potential, build China's super large market into a large market shared by the world, and inject new momentum into global economic development.

Q: As a WTO member, how can China abide by WTO rules and practice the concept of free trade?

A: Since its accession to the World Trade Organization in 2001, China has actively practiced the concept of free trade, fully fulfilled its accession commitments, complied with and implemented the rules of the World Trade Organization, and opened its market significantly, making positive contributions to maintaining the effectiveness and authority of the multilateral trading system.

First, we should improve the rules based market economy laws and regulations, take compliance assessment as a necessary prerequisite before the introduction of trade policies, effectively improve the stability, transparency and predictability of trade policies, and build a legal system that conforms to multilateral trade rules. Second, we earnestly fulfilled our commitment to reduce taxes after joining the World Trade Organization, and lowered import tariff rates significantly and autonomously for many times. By 2010, China's commitment to reduce taxes on goods had been fully fulfilled, and the overall tariff level had dropped from 15.3% in 2001 to 9.8%, close to the average binding tax rate of 9.4% in developed countries. Third, strictly abide by the subsidy disciplines of the World Trade Organization and submit subsidy notification to the World Trade Organization in a timely manner. In June 2023, China submitted a subsidy policy notification for 2021-2022, involving 69 central and 385 local subsidy policies, to achieve full coverage of provincial administrative regions. Finally, through systematic reform in line with international rules, the business environment has been continuously optimized, providing a more transparent, fair and predictable business environment for global enterprises.

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(Source: Xinhua News Agency)