SMM News: the United States recently put forward a statement, saying that "the United States has been treated unfairly for decades," the United States has lost $300 billion to $500 billion a year in trade with China. " Such a menacing accusation is neither common sense nor facts, nor persuasive.
As far as common sense is concerned, economic and trade exchanges are essentially a mutually beneficial and win-win activity. Sino-US economic and trade cooperation is the natural result of complementary advantages between the two sides, the inevitable choice of international industrial division of labor, and the common interests of the two peoples. In the 40 years since the establishment of diplomatic relations between China and the United States, thousands of American enterprises have not been forced to come to China to do business with knives. These enterprises have traveled thousands of miles to do business in China, which is certainly for the sake of making money, and it is mutually beneficial.
After nearly 40 years of development, the economies of China and the United States are deeply integrated and interdependent. In 2018, trade in goods between China and the United States exceeded US $630 billion, and two-way investment totaled more than US $240 billion. American companies have annual sales revenue of $700 billion and profits of more than $50 billion in China. Whether it exports, invests, or charges for intellectual property rights, the United States has reaped huge benefits in China, with pockets bulging with real money earned from the Chinese market. If these data are regarded as the result of "unfair treatment", then as long as normal people want this kind of "unfair treatment" to be longer?
The balance of trade is only the difference in trading volume, not the amount of profit or loss. The United States has not suffered any losses in bilateral trade between China and the United States, and tens of thousands of businesses and consumers are like a mirror in their hearts. From the point of view of production, China and the United States are in different positions of the global industrial chain and value chain, the United States is at the high end, and China is at the middle and low end. Chinese companies earn more processing fees, while American companies benefit greatly from design, parts supply, marketing and so on. From the perspective of consumption, high-quality and high-price Chinese goods have entered thousands of households in the United States, enriched the consumer market in the United States, and increased the well-being of American consumers. Generally speaking, the profits of US enterprises in Sino-US economic and trade cooperation are far higher than those of Chinese enterprises. It can be said that the trade surplus is reflected in China, but the "interest surplus" is in the United States.
Furthermore, the formation of the US trade deficit with China is related to many factors, such as the economic structure of the two countries, the international industrial division of labor, statistical differences and so on. Fundamentally speaking, trade competitiveness is industrial competitiveness, and the export of highly competitive industries is relatively large. The United States maintains a large surplus with China in advantageous industries such as automobiles, aircraft, agricultural products, and service industries. What is more, it should be noted that the trade imbalance between China and the United States is also related to US export controls to China. According to the analysis of relevant US institutions, if restrictions on exports of civilian high-tech products to China are relaxed, the US trade deficit with China can be reduced by about 35 percent. What China wants to buy, the United States does not sell, even if this is an important reason for the current trade imbalance between China and the United States?
Not only that, China's repeated tariff cuts in recent years are 108000 miles short of the so-called "unfair treatment". After China's accession to the World Trade Organization, in the field of trade in goods, as early as 2010, China's tax reduction commitments have been fully fulfilled, and the total tariff level has dropped from 15.3% in 2001 to 8.8%. In 2015, China's trade-weighted average tariff fell to 4.4%, 2.4% in the United States and 3% in the European Union. With trade-weighted average tariffs very close to those of the United States and the European Union, China still makes its own decision to reduce tariffs by more than 700, 800 and 900 tariff lines in 2016, 2017 and 2018, respectively. On the one hand, it aims to meet the growing needs of the Chinese people for a high quality of life, on the other hand, it also provides a huge market for businesses all over the world. Knowing these facts, and then looking back at the so-called "unfair treatment", who is staring at the lie, at a glance.