Opinions
2019.08.07 09:40 GMT+8

China's precise and rational response to U.S. tariff threat

Updated 2019.08.07 09:40 GMT+8
Shen Yi

Editor's note: Shen Yi is a researcher at the School of International Relations and Public Affairs, Fudan University. This article was first published in Chinese on Guang Ming Daily on August 6. The article reflects the author's opinion, and not necessarily the views of CGTN. 

Faced with new U.S. tariffs on another 300 billion U.S. dollars' worth of Chinese goods, the Customs Tariff Commission of China's State Council announced that it will not rule out import tariffs on newly purchased U.S. agricultural products after August 3. Relevant Chinese companies have suspended buying American agrarian produce. 

In response to the U.S. tariff threat, which is in serious violation of the consensus reached between the top leaders of the two countries in Osaka, China took an effective measure to counter irresponsible statements from the U.S. This is an important step for China to protect its national interests and the fundamental interests of its people, and put Sino-U.S. economic and trade relations back on track at an early date. 

Encouraging cooperation and countering intimidation are the inevitable choices for ensuring sound China-U.S. trade ties. Everyone understands that both countries will benefit from a good economic relationship and will suffer from a confrontational one. 

However, since 2018, the U.S. has reneged on its commitments at least four times at critical junctures when significant progress was about to be made in the consultations. Right at these moments, it deviates from the correct path in resolving the trade issues with reckless and irresponsible statements and actions, harming both China and the U.S. and exposing the global economy to entirely avoidable risks.

Traders work on the floor at the New York Stock Exchange (NYSE) at Wall Street in New York City, August 5, 2019. /VCG Photo

Such irresponsible behavior can't be tolerated. Amid recent expectations of easing tensions between the two countries in the global market, the United States has backtracked again and threatened new tariffs. In the face of such a move that hurts others and itself by the U.S., China had to respond firmly. 

In approaching Sino-U.S. economic and trade relations, China seeks to ensure equality and protect its national dignity. It takes a reasonable position and exercises restraint in consultations in order to achieve favorable outcomes. The Chinese side has always attached great importance to the sound and healthy development of Sino-U.S. relations. 

Since the 1970s when the two countries started to normalize their ties, China has always taken a constructive attitude to develop sound bilateral relations by facing the differences between the two countries squarely, attempting to manage their disputes, and seeking the biggest possible common ground. 

President Xi Jinping has made it clear that there are a thousand reasons to make China-U.S. relations work. However, this does not mean that the United States can make wild demands that could undermine China's national interests. Since the founding of the People's Republic of China, the country has been responding firmly but moderately to provocations and taking reasonable stances to defend its national interests. In other words, China does not want a fight, nor does it fear one. It will fight when it has to. 

China has made a strategic choice to take prudent, precise, and reasonable measures to deal with the Sino-U.S. economic and trade frictions. China values its ties with the U.S. and attaches importance to the economic and trade relations between the two countries. 

It hopes to resolve differences in economic interests with the United States in a constructive manner. At the same time, since 1949, China has emphasized the need to meet sincerity with sincerity and action with action in all-important negotiations with the U.S., including talks on the Korea Peninsula nuclear issue, the Taiwan question, and trade talks during China's reform and opening-up process.

Chinese Vice Premier Liu He (R) welcomes United States Trade Representative Robert Lighthizer (C) and Treasury Secretary Steve Mnuchin (L) before holding talks at the Xijiao Conference Center in Shanghai, China, July 31, 2019. /VCG Photo

Since 2018, China has fully demonstrated its rationality, sincerity and goodwill in the entire process of Sino-U.S. trade frictions and related consultations. However, the Sino-U.S. trade consultations can never follow a pattern of China doing the "homework" assigned by the U.S. Equality and mutual respect cannot be mere rhetoric. 

Some Americans must correctly interpret the signals sent by the Chinese side – on the one hand, the procurement of U.S. agricultural products by relevant Chinese enterprises is based on real demand, and on the other hand, it is a sign of the constructive attitude and goodwill of the Chinese government in approaching Sino-U.S. relations. 

The suspension of procurement is yet another clear signal in response to the U.S. threats of new tariffs from September 1. It is a rational response to the so-called "extreme pressure" to help make the U.S. sensible. If the U.S. becomes reasonable and changes its course to return to the path specified by the top leaders in Osaka, Chinese purchases will resume. If it doesn't, certain Americans who are on the wrong side of history will pay higher political and economic prices. 

In the wake of actions taken by some irresponsible Americans, China made precise and rational responses to ensure the healthy development of Sino-U.S. economic relations and that of the world economy, fulfilling the responsibility of a responsible big country. 

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