Why China cannot concede in trade war

Source:Global Times Published: 2018/4/21 0:23:18

With a pending China-US trade war, the US media reported that the Trump administration may release tariffs on another $100 billion of Chinese imports as early as this week. Some media reports said the US may invoke an emergency law to restrict Chinese investment in US high-tech industry, and in the worst scenario, may freeze China-owned assets, including US government debt.

The $100 billion tariffs plan and the news on the emergency law are designed to increase pressure on China, trying to shake China's will to fight back and force China to accept US terms.

China's Ministry of Commerce has reiterated its resolution to fight the US-initiated trade war to the end. Beijing kept its word by slapping multiple anti-dumping duties on US goods.

Since the beginning, China's stance has been explicit, namely, China does not want a trade war but is not afraid of one.

China will not punch first. We will not be the first to launch the trade war, nor will we take measures to escalate it. But each and every time the US imposes tariffs on us, we will launch countermeasures with similar scale. China's determination on the parity of countermeasures is firm.

So why can't Beijing make some concessions to cease the trade war? If China and the US conduct normal trade talks, it is unavoidable that both sides need to make compromises. But the Trump administration has made unreasonable demands, and has tried to force Beijing to accept its terms while wielding a stick.

The Trump administration also tries to suppress China's innovative capability through a trade war and to coerce Beijing into being the one that solves the US' unreasonable trade structure problem. What Washington has done is overbearing at a never-before-seen level.

Washington has unrealistic fantasies about "balancing China-US trade." It tries to solve US economic issues with sticks and threats rather than painstaking reforms. Simply put, it attempts to make a hard sell. The world is required to buy whatever the US produces at its convenience, and developing countries like China cannot make technological progress in the process.

China will never accept such rules. We just follow WTO rules. If China concedes even one inch, the US will for sure take a foot.

Even if we are in a trade war, China's development will continue. External difficulties will spur China's high-tech research and the growing domestic consumer market will make up for the loss in the contracted trade volume with the US. China's consumer market is quickly surpassing that of the US, which gives China greater stamina. In the long term, this trade war will make China stronger.

Posted in: EDITORIAL

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