China needs confidence and resolve in face of trade war

BEIJING- A news report by China.org.cn on the trade war against China launched by the United States:

A trade war against China was launched by the United States as the 2018 World Cup kicked off. Two different forms of confrontation have since started. On June 18, the White House made a statement, threatening tariffs on $200 billion or even $400 billion of Chinese products. In response, the Chinese Ministry of Commerce said on June 19 that if the United States takes the further step, China will have no choice but to take multiple measures, both quantitative and qualitative, to strike back resolutely. Now a trade war seems to be imminent.

Since his election, President Trump has repeatedly stressed on numerous occasions that bilateral trade between the United States and China has been unbalanced, and that it is unfair that the United States has suffered a deficit, while China has seen a surplus.

The allegation that Sino-U.S. bilateral trade remains unbalanced is true, but this can’t be taken as an unfair outcome. The origins of the current situation are complex. The chief causes of the problem are the difference between the two countries’ economic structures, the role of the U.S. dollar as a global currency, an American lifestyle featuring low deposits and high consumption, and U.S. export restrictions on high-tech products to China, amid other systemic issues. Taking the U.S. dollar’s role as an example, the United States managed to make the dollar a global currency, which led to an enormous profit gain. However, to maintain the dollar’s position, the United States must dispense its currency extensively worldwide, which has led to trade deficits. This is the cost that the United States has to pay. The logic is simple, and the businessman-turned U.S. president is fully aware of this fact. He has just conveniently failed to mention it.

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The United States has dominated the world ever since WWII, and as a super power, it has long forgotten how to win alongside other countries. A win-win situation seems to mean the U.S. wins, then wins again.

Over the past four decades of reform and opening up, China has seized opportunities to globalize, promoting rapid economic development. It has become the world’s second-largest economy. In the past five years in particular, the country has intensified its efforts to promote progress in the economy, military, culture, science and technology. China’s GDP share of the global economy has grown to roughly 15 percent, up from 11 percent. However, some U.S. politicians wedded to Cold War mentality use these achievements as a pretext to fan the flames of the so-called “China threat” and to wage a trade war against China.

China had no intention of engaging in a trade war of any sort. In recent months, it has been working to resolve the problem through negotiation. However, as an old Chinese saying goes, “The trees may prefer calm but the wind will not subside.” When someone declares a trade war against China, we have no choice but to respond. China has a very large population with great market potential and a hugely resilient economy, thus it is able to adjust itself quickly to any situations and is able to deal with enduring pressures. Trade tariffs, whether placed on goods worth $50 billion or $200 billion, are merely figures on paper and the results are hard to predict.

This year marks the 40th anniversary of China’s reform and opening-up policies. The country has now reached a new starting point. We have all the confidence, patience and resolve to deal with a trade war.

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