US President Donald Trump’s reciprocal tariffs has produced a seismic shift in the international trading and economic system. It seems that neocons of Trump-capitalism have lost all vital economic wisdom putting the international cooperation and community in the line of fire. It imposed 54 percent tariffs on Chinese goods which have no economic and trade justifications.
Most recently, the policy makers of China strongly opposed the US abuse of tariffs dubbing it as unwise and irrational, severely violating the WTO rules and harming the rule based global governance and multilateral system.
It further stated that the US imposed reciprocal tariffs on all trading partners, including China, severely infringing upon the legitimate rights and interests of nations. By strongly condemning and firmly opposing it termed it as massive disruption to the stability of the global economic order.
Additionally, it violated fundamental economic principles and market norms, disregarding the balanced outcomes achieved through multilateral trade negotiations, and ignored the fact that the United States has long benefited substantially from international trade. It labeled it as a tool of extreme pressure for selfish gain further strengthening its unilateralism, protectionism, and economic bullying against China and the rest of the world.
The Chinese statement rightly considered it as a zero-sum game under the guise of pursuing “reciprocity” and “fairness,” seeking “America First” and “American exceptionalism. Thus there will be no winner in the trade war.
Undoubtedly, China’s economy has been open, its policies are supportive and its laws are transparent guaranteeing inflows of foreign direct investments.
Moreover, it said that the United States is exploiting tariffs to subvert the existing international economic and trade order, prioritizing U.S. interests above the global common good and sacrificing the legitimate interests of countries worldwide to serve its own hegemonic agenda.
It rightly noted that such one-sided actions will inevitably face widespread opposition from the international community. By showcasing the real essence of the Chinese ancient civilization it gave the message of multiculturalism, international cooperation, economic globalization and global shared prosperity promoting and protecting the spirit of mutual respect and humanity.
It is a good omen showing the Chinese superior wisdom of constructive cooperation and competition stressing that pressure and threats are not the right way to deal with China. China has taken and will continue to take resolute measures to safeguard its sovereignty, security and development interests.
Noting that China-U.S. economic and trade relations should be mutually beneficial in nature, the statement said the United States should conform to the common expectations of the people in the two countries and around the world.
It rightly suggested that both countries should cooperate with each other and the US should stop using tariffs as a weapon to suppress China’s trade and economy, and stop undermining the legitimate development rights of the Chinese people.
Its stressing of greater openness and transparency vividly reflects its strong resolve for international cooperation and quick economic growth. Thus its further qualitative opening up will steadily expand its institutional opening-up in rules, regulations, management and standards, implement high-level trade and investment liberalization and facilitation policies, and foster a market-oriented, law-based and internationalized first-class business environment, to share its development opportunities with the world, and achieve mutual benefits and win-win results.
Obviously, economic globalization is the only way forward for the development of human society. The rules-based multilateral trading system with the WTO at its core has made important contributions to promoting global trade, economic growth and sustainable development.
Furthermore, by saying that the world will not and should not retreat to mutual isolation and division stands for peaceful co-existence and economic cooperation promoting mutual benefits and win-win outcomes reflecting the common aspirations of all people, while beggar-thy-neighbor economic bullying will ultimately backfire.
“It is the shared responsibility of the international community to make economic globalization more open, inclusive, universally beneficial and balanced,” it said.
Development is a universal right for all countries, not the exclusive privilege of a few. International affairs should be discussed and handled collectively, and the future and destiny of the world should be in the hands of all nations, the statement said.
There are no winners in trade wars or tariff wars, and protectionism leads to a dead end, it stressed. And all countries should uphold the principles of extensive consultation, joint contribution and shared benefits, uphold genuine multilateralism, work together to oppose all forms of unilateralism and protectionism, and uphold the international system with the United Nations at its core and the multilateral trading system with the WTO at its core.
In summary, the Chinese statement is holistic, comprehensive, timely, interactive, integrative and futuristic outlining all possible policy options for achieving the desired goals of economic globalization and international cooperation. Thus a just and cooperative global system is the way forward snatching the clutches of hegemony and economic exploitation.
It is indeed an antidote to ongoing decoupling and delinking, showcasing the strategic importance and utility of the Chinese positive, productive and participatory role in the global economy and governance.
It shows inclusiveness, openness, transparency and modernization of the Chinese government to promote global peace, prosperity and progress through joint efforts.
Undoubtedly, China’s economy has been open, its policies are supportive and its laws are transparent guaranteeing inflows of foreign direct investments.
It has become the biggest trading partner of more than 150 countries in the world showing its increasing role in the global economy, trading system, manufacturing capacity and good governance.
Last but not least, it guarantees the Chinese state’s strong commitment promoting win-win cooperation and mutually befitting propositions for the world economy and communities alike.
The writer is President of Pak-China Corridor of Knowledge and Executive Director at Center for South Asia & International Studies (CSAIS), Islamabad.