SMM News: the 11th round of high-level economic and trade consultations between China and the United States ended in Washington on Friday (10th) local time. Liu he, member of the political Bureau of the CPC Central Committee, vice premier of the State Council, and Chinese leader of the China-US Comprehensive Economic Dialogue, said in an interview after the consultation that the two sides had conducted better communication and cooperation, and the negotiations did not break down, but on the contrary. This is only a normal small twists and turns in the negotiations between the two countries, and it is inevitable. The Chinese side is cautiously optimistic about the future of the negotiations. At the same time, he revealed that the economic and trade teams of the two sides have agreed to meet in Beijing soon to continue communication and promote consultations.
Earlier, at 00:01 Washington time, the US tariff on $200 billion worth of Chinese imports was raised from 10 per cent to 25 per cent. In response, China issued a statement two minutes later, almost simultaneously announcing that it had to take the necessary countermeasures.
Such a result is not surprising. Because, since February last year, 11 rounds of Sino-US economic and trade consultations have been discussed, and although important progress has been made, it has also been repeated several times, and fighting may have become the norm of Sino-US economic and trade frictions. Prior to the current round of negotiations, the United States said it would upgrade tariffs, leading to fears that the Sino-US talks would break down. Under such pressure, the Chinese delegation continues to go to the United States as promised for the eleventh round of consultations, which in itself shows the greatest sincerity in resolving the problem and a high degree of responsibility for the interests of the two peoples and the people of the world.
However, it is clearly unfair for the US to accuse China of trying to renegotiate some of the elements of the agreement in an attempt to blame China for the failure of the negotiations.
On the one hand, negotiations are originally a process of exchanging views, resolving problems, and reaching consensus. It is normal for the two sides to have different views, and it is normal for the two sides to have changes before an agreement is reached. For this reason, the two sides should further discuss to resolve differences and expand consensus, and should not use the differences and changes in the process of negotiations as a reason to impose tariffs. This is obviously overreaction, using the wrong prescription, and making the wrong force. Artificially create obstacles to the negotiation process.
On the other hand, the US side accused the Chinese side of "retrogression" and labeled the Chinese side as "betrayal" and "breach of faith." However, so far, what China has "promised" is the words of the US side, and I am afraid there are many elements of China's "commitment". For a long time, the US side has been talking about whether China meets its economic and trade concerns, but it does not talk about whether it meets China's concerns or not, which is contrary to the negotiating principles of mutual respect, equality and mutual benefit. This is also an important reason why progress has not been made in this round of negotiations.
With regard to the Sino-US economic and trade consultations, the Chinese side has its own core concerns and cannot budge on these issues of principle. The first is to abolish all additional tariffs and restore bilateral trade to normal. Tariffs are the starting point of the trade dispute between China and the United States, and if an agreement is reached, of course, tariffs must be completely abolished. Today, with the high globalization of the industrial chain, the levying of tariffs is bound to have an impact on the economies of both China and the United States, and it will also hurt all aspects of the industrial chain. Over the past year or so, the negative impact of Sino-US economic and trade frictions has proved that there are no winners in the trade war, and that levying tariffs is not the solution to the problem. At present, there is a growing global opposition to the imposition of tariffs, including the American people. The US side should respect the aspirations of the Chinese side and take into account the interests of the people around the world.
On the issue of trade procurement, the US side has repeatedly asked China to expand imports from the United States, and even asked the Chinese side to promise a specific amount. However, China's expansion of imports should be based on meeting the needs of the domestic people for a better life and promoting high-quality economic development. The figures for trade procurement should not only be in line with reality, but also be oriented to the whole world. Which products are competitive? It will be welcomed by Chinese consumers instead of "buying and selling".
There is also the issue of the text of the agreement, which should include not only the demands of the US side, but also the propositions of the Chinese side, so as to reflect the balance of the agreement. Moreover, the expression of the text should be accepted by the Chinese people without harming the sovereignty and dignity of the country. Only such an agreement can be truly implemented.
As the US side insisted on imposing tariffs, the Chinese side was forced to counteract, and the Sino-US trade war escalated again. The Chinese side regrets this situation, but it also faces it calmly. Over the past year or so, under the pressure of the US side to escalate tariffs, although the Chinese economy has been affected to a certain extent, facts have proved that this impact is completely controllable and bearable. In the first quarter of this year, China's GDP rose 6.4 percent from a year earlier, and the total value of imports and exports of goods increased 4.3 percent in the first four months of this year. Key indicators of economic operation, such as employment, prices, and income, were also generally better than expected. The IMF has raised its growth forecast for China by 0.1% to 6.3%, making it the only major economy in the world to have raised its growth forecast. Buffett, a prominent US investor, said recently that it was ideal to invest in China and that "some big deployments may have to be made in the next 15 years".
This information shows that over the past year or so, China's measures to deal with external shocks have been properly implemented and in place, enhancing the resilience of the economy, the potential of the market and the confidence of investment and consumption. In this regard, Liu he said with confidence that China has sufficient policy tools and that China's economy will maintain a good trend of steady and healthy development. This means that in the future, China will respond more calmly to external challenges, promote high-quality economic development in accordance with established arrangements, and meet the needs of its people for a better life.
It is worth noting that although there are still differences between China and the United States on core concerns, they have agreed to continue to communicate. This shows that after all kinds of twists and turns, the two sides are more aware of each other's bottom line and principles, and both sides have a strong desire to continue to resolve the issue through negotiations. After all, economic and trade cooperation is the ballast and thruster of Sino-US relations, from which both sides benefit a lot.
In the future, China will continue to communicate with the US side with the greatest sincerity and best efforts, strive to narrow differences, expand consensus, and push forward consultations. However, such consultations should respect each other's core interests and major concerns and embody the principle of equality and mutual benefit. Only in this way can the Sino-US economic and trade consultations survive the final stage of the marathon race, get through the "darkness before dawn," and then explore a way to get along with each other by managing differences and expanding consensus. We will promote the building of Sino-US relations based on coordination, cooperation and stability.