On Thursday, the Chinese government released the comprehensive official white paper, produced by the State Council Information Office. This paper speaks directly to the Section 301 tariffs recently issued by the United States against Chinese imports. The short document explains how Beijing views the current escalating trade tensions and what it hopes to see as a result in terms of future interaction with Washington.
Contrary to current USTR characterizations, in the white paper Chinese officials claimed that raising tariffs would not address U.S. trade surplus concerns. They sounded the alarm that these new measures would introduce unprecedented levels of volatility into financial markets. Besides that, they emphasized that it would increase inflationary pressures in the U.S. economy. As the Chinese government has repeatedly made clear, these tariffs risk harming American industries they intend to protect, thus calling into question their long-term efficacy.
Beijing originally welcomed the trade deal, but hoped that the U.S. would “meet half-way” by immediately canceling the unilateral trade barriers. Similar language as above was found in the latest white paper, which again stressed China’s keeness to deepen communications with the U.S. to control divergences and foster cooperation.
In fact, the administration criticized the U.S. approach as the worst type of economic bully – unilateralism and protectionism. Chinese officials like to portray tariffs as a U.S. They see these tariffs as being both a cudgel to bring immense pressure to bear and to push forward American interests.
“The U.S. uses tariffs as a weapon to exert extreme pressure and seek selfish interests. This is a typical act of unilateralism, protectionism, and economic bullying.” – Beijing
As the policy brief noted, a net average of 104% tariffs on Chinese imports have now gone into effect. Beijing’s argument is that these punitive tariffs will serve to decimate certain American industries. Even though the U.S. has acted aggressively, the Chinese foreign ministry was unyielding in defense of its sovereignty. They followed up by declaring they were prepared to take “resolute and forceful” action to defend their interests.
In speaking on the possibility of resolution, Foreign Ministry Spokesperson Lin Jian highlighted that when entering into negotiations, respect must go both ways.
“If the U.S. genuinely wants to resolve the problem through dialogue and negotiation, it should show an attitude of equality, respect and mutual benefit.” – Foreign Ministry Spokesperson Lin Jian
Chinese officials reiterated their commitment to such constructive engagement with the U.S. At the same time, they continue to be firm in rejecting what they perceive as hostile trade practices coming out of Washington. They emphasized their intent to compromise and meet in the middle to help create a more equitable trade connection.
As tensions between the two nations escalate by the day, the lasting ramifications of these tariff actions are unclear. The Chinese government is laser-focused on undermining U.S. initiatives. While doing so, it calls for a more multilateral, less unilateral, and more constructive approach to addressing trade conflicts.