Editor's note: Luke Shen-Tien Chi, a special commentator on current affairs for CGTN, is an American-born Chinese spokenologist and writer. The article reflects the author's opinions and not necessarily the views of CGTN.

The US Customs and Border Protection agency said it will halt collection of tariffs imposed ‌under the International Emergency Economic Powers Act (IEEPA), effective Tuesday. The halt coincides with Trump's imposition of a new 15% global tariff under a different legal authority – up from the 10% rate announced less than 24 hours earlier – after the Supreme Court struck down his previous IEEPA-based tariffs as illegal.

The divergence within the US sent broader shock waves through an already fragile global economy. Framed as a measure to protect domestic industries, the policy reignites a familiar question at a critical moment for global trade: Can protectionist walls truly shield an economy, or do they ultimately trap it behind higher costs and slower growth? History suggests the latter.

The positive effects of free trade on global economic growth are widely recognized in mainstream economics. Yet in recent years, protectionist sentiment has resurfaced in some economies, driven by promises to revive domestic manufacturing and shield local industries from foreign competition. While such measures may offer short-term relief to specific sectors, broad-based tariffs and trade barriers risk harming consumers, disrupting global supply chains and undermining international economic stability.

Protectionism operates on the premise that government intervention – through tariffs, quotas and subsidies – can safeguard domestic industries. However, economic historians note that such measures often lead to higher prices, reduced innovation and slower growth. The 1970s offer a cautionary lesson: Protectionist trade policies combined with heavy-handed regulation in some Western economies contributed to stagflation and eroded purchasing power.

History provides further warnings about economic isolation. The protectionist trade wars of the 1920s and 1930s, marked by spiraling tariffs such as the Smoot-Hawley Tariff Act, are widely cited by scholars as factors that deepened the Great Depression. These barriers choked global commerce and amplified geopolitical instability.

Against this backdrop, China has emerged as a steadfast advocate for multilateral trade and open markets. In February 2026, China submitted a comprehensive position paper to the World Trade Organization (WTO) outlining its vision for WTO reform – the first such document since the launch of this necessary reform process in 2022.

The paper articulates several core principles: that economic globalization is an irreversible historical trend; that unilateralism and protectionism are not the solution to today's challenges; and that the international community should address real-world challenges through multilateral cooperation, domestic reform and inclusive development.

China places development at the center of its trade agenda, calling for helping developing economies seize growth opportunities in digital transformation, green transition and artificial intelligence. This development-focused approach resonates with many emerging economies seeking to upgrade their industrial capabilities. The country also advocates fair competition while emphasizing respect for different economic systems and stages of development, underscoring the need to preserve policy space for developing countries.

China's commitment is backed by concrete action. In May 2026, Beijing will implement a landmark zero-tariff policy for 53 African nations – the most expansive trade concession China has ever granted to the continent. This initiative eliminates duties on 100% of tariff lines, providing African products with unprecedented access to the world's second-largest consumer market.

The policy is designed to address structural trade imbalances and incentivize African exports of value-added goods from agricultural products to manufactured items, demonstrating China's commitment to shared prosperity with the Global South.

At the regional level, the Regional Comprehensive Economic Partnership (RCEP) continues to deliver tangible benefits. Now in its fourth year, RCEP has helped Chinese companies reduce import costs and expand market access across the Asia-Pacific. China has also signed 24 free trade agreements with 31 countries and regions, with FTA partners accounting for approximately 45% of its total foreign trade.

Regarding concerns raised by some about certain Chinese industries, official statements and expert analysis offer important context. According to China's National Development and Reform Commission, some narratives fail to consider global demand projections. The International Energy Agency estimates that global demand for new energy vehicles could reach 45 million units by 2030 – more than three times 2023 global sales, while global power battery demand is projected to reach 3,500 gigawatt-hours (GWh) by 2030, more than four times 2023 shipments.

From this perspective, current production capacity is essential to meeting future global demand and advancing climate goals. Chinese exports of green technologies have helped lower costs worldwide and accelerate global energy transition.

China has consistently articulated this message at major international forums. At the World Economic Forum in Davos in January 2026, Chinese officials emphasized openness, opposition to protectionism, and the importance of maintaining global supply chains. They noted that tariff and trade wars inflict serious shocks on the world economy and undermine multilateralism. While acknowledging the imperfections of globalization, they argued that the solution is not to retreat to self-imposed isolation, but to find solutions together through dialogue.

On specific trade matters, China maintains its commitment. Regarding the European Union's use of the Foreign Subsidies Regulation, China has expressed its views through appropriate channels, urging the creation of a fair and predictable market environment for bilateral cooperation. China stands ready to work with all parties to address legitimate concerns while upholding the multilateral trading system.

As the global economy navigates an era of heightened uncertainty, the choice between protectionism and openness carries profound implications. Historical experience suggests that protectionism creates uncertainty for businesses and increases the risk of economic downturn. The Smoot-Hawley Tariff Act of 1930, which triggered retaliatory measures and deepened the Great Depression, remains a cautionary tale that should not be forgotten.

China's position is clear: Multilateral cooperation, not unilateral barriers, offers the path to shared prosperity. By reducing tariffs, embracing competitive market forces and working through institutions like the WTO, the global community can address legitimate concerns while maintaining the open trade architecture that has underpinned decades of development. In today's interconnected global economy, maintaining open and stable trade relations serves the interests of all nations. The way forward lies in dialogue, mutual respect and a renewed commitment to the multilateral rules-based system.

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