China refutes US criticism of its economic model

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China refuted criticism of its economic model by US envoys at the World Trade Organization General Council Meeting in Geneva on Thursday.

Zhang Xiangchen, China’s envoy to the WTO, said China has been sticking to the rules agreed when it joined the WTO in 2001, while the US is demonizing China by attacking its economic model to take the heat off itself.

In a paper presented by US Ambassador Dennis Shea to the WTO entitled “China’s trade-disruptive economic model”, the US accused China of "protectionist and mercantilism" surrounding their economic policies.

“The US is seeking to divert the attention of the international community and ease the heat on itself,” Zhang said, adding that the US has unsettled the world by launching a global trade war citing its domestic laws – Section 232 and 301, which has met strong oppositions from WTO members.

Dennis Shea (R), US Ambassador to the WTO talks with Zhang Xiangchen, Chinese Ambassador to the WTO, before the General Council meeting at the World Trade Organization (WTO) in Geneva, Switzerland, July 26, 2018./Reuters Photo

He said the US has dressed itself as a victim and believes that the current trade tensions are caused by China's so-called "trade-destructive economic model".

But the US is taking its own ideas as universal, lacking consistency in its evaluation of policy impacts and making illegal arguments not grounded in facts, Zhang rebutted.

"In fact, we all know that it's up to the people of a country to decide what kind of economic model the country adopts or what kind of path of development it will follow. China has chosen the path of a socialist market economy with Chinese characteristics. Over the past 26 years, we have made great progress and benefited the world," he noted.

The US paper had misleadingly edited China’s official policy, cutting out references to the decisive role of the market in allocating resources, he noted.

According to Zhang, recognizing the decisive role of the market in allocating resources is the foundation for economic and trade exchanges between China and other WTO members.

“China’s state-owned enterprises are independent market entities responsible for their own profits or losses, and China does not have mandatory technology transfer regulations,” Zhang said.

He reiterated that as a developing country, China has made contributions to the world as far as it can, but still has a long way to go in achieving sufficient and balanced development.

WTO Director-General Roberto Azevedo has called for more dialogue to reconcile the differences.

China supports WTO reform

China's Ministry of Commerce on Thursday said the country supported the reform of the World Trade Organization (WTO).

"China is supportive of WTO reform, and hopes the reform will address the concerns of most members and reflect their needs," Ministry of Commerce spokesperson Gao Feng said at a press conference, commenting on the trade deal made between the United States and the European Union (EU), which included agreement on WTO reform.

US President Donald Trump and European Commission President Jean-Claude Juncker Wednesday agreed to mitigate transatlantic trade tensions over Washington-launched tariffs.

"It's of course a good thing to avoid a trade war. It's not only good for the EU and the United States, but good for the whole world," Gao said, "China will pay close attention to whether the deal will materialize."

Gao said China hoped that the primary purpose of the WTO should not be changed and its fundamental principle not challenged through gradual reform. At the same time, the reform should strengthen the authoritativeness and leadership of the WTO, and consolidate the basic functions and role of free trade principle and multilateral trading system, to better promote global free trade and economic globalization.

"We should always stick to the overall framework of the multilateral trading system and uphold multilateral trade order," Gao said, adding free trade arrangements among WTO members are helpful supplement and positive driving force for the multilateral trading system.

"China has always been an advocate for the construction of open, transparent and mutually beneficial regional free trade arrangements," Gao said.

China holds a positive view on such arrangements as long as they are in line with WTO rules, beneficial for economic globalization and regional economic integration, as well as conducive to building a community with a shared future for mankind, Gao said.

(With input from Xinhua)