[Live Updates] China issues white paper on China-U.S. economic, trade talks stance

Updated: 2019-06-02 11:35:45
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11:09

Cooperation is the only correct choice for China and the US and win-win is the only path to a better future, according to a white paper titled China's Position on the China-US Economic and Trade Consultations issued Sunday by the State Council Information Office.

As to where the China-US economic and trade consultations are heading, China is looking forward, not backward. Disputes and conflicts on the trade and economic front, at the end of the day, need to be solved through dialogue and consultation, the white paper said.

Striking a mutually beneficial win-win agreement serves the interests of China and the US and meets the expectations of the world, the white paper said.

It is hoped that the US can pull in the same direction with China and, in a spirit of mutual respect, equality and mutual benefit, manage economic and trade differences, strengthen trade and economic cooperation, and jointly advance China-US relations based on coordination, cooperation and stability for the well-being of both nations and the world ,the white paper said.

11:08

For the good of the common interests of the two countries and global trade order, and in a strenuous effort to push forward the economic and trade consultations, China remains committed to resolving issues through dialogue and consultation, responding to US concerns with the greatest patience and sincerity, properly handling differences while seeking common ground, and overcoming obstacles to practical solutions. During the consultations, in accordance with the principle of mutual respect, equality and mutual benefit, China's only intention is to reach a mutually acceptable deal, the white paper noted.

Mutual respect means that each side should respect the other's social institutions, economic system, development path and rights, core interests, and major concerns. It also means that one side should not cross the other's "red lines". The right to development cannot be sacrificed, still the less can sovereignty be undermined, the white paper pointed out.

10:59

The US government's accusation of Chinese backtracking is totally groundless, according to a white paper titled China's Position on the China-US Economic and Trade Consultations, issued by the State Council Information Office on Sunday.

The white paper noted that it is common practice for both sides to make new proposals for adjustments to the text and language in ongoing consultations. In the previous more than ten rounds of negotiations, the US administration kept changing its demands. It is reckless to accuse China of "backtracking" while the talks are still under way.

Bearing in mind the broader interests of trade and economic relations between the two countries, China remained cool-headed, exercised restraint, and sent a senior delegation to the US, as agreed, for the 11th round of economic and trade consultation from May 9 to 10. 

China expressed strong opposition to the unilateral tariff increase by the US and stated its firm position that it would have to take necessary countermeasures, it said.

China emphasized once again that trade deals must be based on equality and mutual benefit. China will never compromise on major principles concerning its core interests, the white paper said.

10:52

Following numerous rounds of consultations, the two countries had agreed on most of the issues. Regarding the remaining issues, the Chinese government urged mutual understanding and compromise for solutions to be found, the white paper said.

But the more the US government is offered, the more it wants. Resorting to intimidation and coercion, it persisted with exorbitant demands, maintained the additional tariffs imposed since the friction began, and insisted on including mandatory requirements concerning China's sovereign affairs in the deal, which only served to delay the resolution of remaining differences. On May 6, 2019, the US irresponsibly accused China of backtracking on its position to shift the blame for the inconclusive talks onto China. Despite China's fierce opposition, the US raised the additional tariffs on US$200 billion of Chinese exports to the US from 10 percent to 25 percent, which represented a serious setback to the economic and trade consultations. On May 13 the US announced that it had launched procedures to slap additional tariffs on remaining Chinese goods, which are worth around US$300 billion. 

These acts contradicted the agreement reached by the two presidents to ease friction through consultation -- and the expectations of people around the world -- casting a shadow over the bilateral economic and trade consultations and world economic growth. In defense of its own interests, China had to take tariff measures in response, the white paper said. 

10:51

The US measures threaten global economic growth. With the shadow of the international financial crisis still lingering over the global economy, the US government has escalated economic and trade friction and hiked additional tariffs, provoking corresponding measures by the countries involved. This disrupts global economic and trade order, dampens world economic recovery, and undermines the development of companies and the well-being of people in all countries, plunging the world economy into the "recession trap," according to the white paper.

Global Economic Prospects released by the World Bank in January 2019 revised its forecast for global economic growth down further to 2.9 percent, citing continuous trade friction as a major downward risk. The International Monetary Fund also marked down its projection of world economic growth for 2019 to 3.3 percent from the 2018 estimate of 3.6 percent in its World Economic Outlook report published in April 2019, suggesting that economic and trade friction could further depress global economic growth and weaken already anemic investment.

The US moves disrupt global industrial and supply chains. China and the US are both key links in global industrial and supply chains. Given the large volume of intermediary goods and components from other countries in Chinese end-products exported to the US, US tariff hikes will hurt all the multinationals -- not least those from the US -- that work with Chinese companies. The tariff measures artificially drive up the costs of supply chains, and undermine their stability and security. As a result, some businesses are forced to readjust their global supply chains at the expense of optimal resource allocation, the white paper said.

It is foreseeable that the latest US tariff hikes on China, far from resolving issues, will only make things worse for all sides. China stands firm in opposition. Recently, the US administration imposed "long-arm jurisdiction" and sanctions against Huawei and other Chinese companies on the fabricated basis of national security, to which China is also firmly opposed, according to the white paper. 


10:49

China and the US are each other's largest trading partner and important source of investment, and their commercial cooperation has brought substantial benefits to both countries and both peoples, according to a white paper titled China's Position on the China-US Economic and Trade Consultations released by the State Council Information Office on Sunday.

In 2018, bilateral trade in goods and services exceeded US$750 billion, and two-way direct investment approached US$160 billion, the white paper said.

According to China Customs, the trade in goods between China and the US grew from less than US$2.5 billion in 1979 when the two countries forged diplomatic ties to US$633.5 billion in 2018, a 252-fold increase. In 2018, the US was China's largest trading partner and export market, and the sixth largest source of imports. According to the US Department of Commerce, in 2018 China was the largest trading partner of the US, its third largest export market, and its largest source of imports. China is the key export market for US airplanes, soybeans, automobiles, integrated circuits and cotton. During the ten years from 2009 to 2018, China was one of the fastest growing export markets for American goods, with an annual average increase of 6.3 percent and an aggregate growth of 73.2 percent, higher than the average growth of 56.9 percent represented by other regions in the world, the white paper said.

10:44

Trade in services between China and the US is flourishing and highly complementary. The two countries have conducted extensive, in-depth, and mutually-beneficial cooperation in tourism, culture, and intellectual property. China is the largest destination for US tourists in the Asia-Pacific and the US is the largest overseas destination for Chinese students. According to Chinese figures, two-way trade in services rose from US$27.4 billion in 2006, the earliest year with available statistics, to US$125.3 billion in 2018, a 3.6-fold increase. In 2018, China's services trade deficit with the US reached US$48.5 billion.

Over the past forty years, two-way investment between China and the US has grown from near zero to approximately US$160 billion, and this cooperation has proved fruitful. According to MOFCOM, by the end of 2018 accumulative Chinese business direct investment in the US exceeded US$73.17 billion. The rapid growth of Chinese business investment in the US has contributed to local economic growth, job creation, and tax revenues. According to MOFCOM, the paid-in investment by the US in China was US$85.19 billion by the end of 2018. In 2017, the total annual sales revenues of US-invested companies in China were US$700 billion, with profits exceeding US$50 billion.

Therefore, if trade in goods and services as well as two-way investment are taken into account, China-US trade and economic relations are mutually beneficial, rather than the US "being taken advantage of", the white paper said. 



10:39

China and the US are each other's largest trading partner and important source of investment, and their commercial cooperation has brought substantial benefits to both countries and both peoples, according to a white paper titled China's Position on the China-US Economic and Trade Consultations released by the State Council Information Office on Sunday.

In 2018, bilateral trade in goods and services exceeded US$750 billion, and two-way direct investment approached US$160 billion, the white paper said.

According to China Customs, the trade in goods between China and the US grew from less than US$2.5 billion in 1979 when the two countries forged diplomatic ties to US$633.5 billion in 2018, a 252-fold increase. In 2018, the US was China's largest trading partner and export market, and the sixth largest source of imports. According to the US Department of Commerce, in 2018 China was the largest trading partner of the US, its third largest export market, and its largest source of imports. China is the key export market for US airplanes, soybeans, automobiles, integrated circuits and cotton. During the ten years from 2009 to 2018, China was one of the fastest growing export markets for American goods, with an annual average increase of 6.3 percent and an aggregate growth of 73.2 percent, higher than the average growth of 56.9 percent represented by other regions in the world, the white paper said.



10:31

An article in The Diplomat predicted that China will become a leader in global intellectual property. Many of the concerns raised by foreign firms doing business in China have already been addressed through judicial reform and a strengthened enforcement mechanism, according to the white paper.

In terms of some key innovation indices, China is already among the world's leading players, the white paper said.

In 2017, total R&D investment in China reached RMB 1.76 trillion, ranking second in the world. The number of patent applications reached 1.382 million, ranking No. 1 in the world for the seventh consecutive year. The number of invention patents granted reached 327,000, up by 8.2 percent year-on-year. China ranks third in the world in terms of valid invention patents held, the white paper noted.

China's economic development has benefited from international technology transfer and dissemination. International holders of technology have also reaped enormous benefits from this process, said the white paper.

China encourages and respects voluntary technical cooperation between Chinese and foreign firms based on market principles. It strongly opposes forced technology transfer and takes resolute action against intellectual property infringement. Accusations against China of forced technology transfer are baseless and untenable, the document noted.


10:31

Former WIPO Director General Arpad Bogsch spoke highly of China's legal framework for intellectual property protection, noting that China's achievements are "unmatched in the history of intellectual property protection."

The US Chamber of Commerce recognized that China is making concrete progress in creating an intellectual property environment appropriate to the 21st century.

In its 2018 China Business Climate Survey Report, the American Chamber of Commerce in China noted that among the main challenges facing its member companies operating in China, concern over intellectual property dropped from 5th place in 2011 to 12th place in 2018.

10:29

Accusing China of stealing intellectual property to support its own development is an unfounded fabrication, according to a white paper titled China's Position on the China-US Economic and Trade Consultations released by the State Council Information Office on Sunday.

Historical records confirm that China's achievements in scientific and technological innovation are not something we stole or forcibly took from others; they were earned through self-reliance and hard work, the white paper said.

China has established a legal system for the protection of intellectual property that is consistent with prevailing international rules and adapted to China's domestic conditions. The understanding of the importance of intellectual property among the general public and business community in China has increased, the value of royalties paid to foreign rights-holders has risen significantly, and the number of intellectual property applications and registrations has surged, said the white paper.

10:28
Turning a blind eye to the nature of the economic structure and the stage of development in China and the US, as well as the reality of the international industrial division of labor, the US insists that China's "unfair" and "non-reciprocal" trade policies have created a trade deficit in bilateral commercial exchanges that constitutes "being taken advantage of," leading to unilateral imposition of additional tariffs on China. In fact, in today's globalized world, the Chinese and American economies are highly integrated and together constitute an entire industrial chain. The two economies are bound in a union that is mutually beneficial and win-win in nature. Equating a trade deficit to being taken advantage of is an error. The restrictive measures the US has imposed on China are not good for China or the US, and still worse for the rest of the world. 
10:27

The China-US economic and trade friction provoked by the United States damages the interests of both countries and of the wider world, according to a white paper titled China's Position on the China-US Economic and Trade Consultations issued by the State Council Information Office on Sunday.

Trumpeting "America First," the current US administration has adopted a series of unilateral and protectionist measures, regularly wielded tariffs as a "big stick" and coerced other countries into accepting its demands. The US has initiated frequent investigations under the long-unused Sections 201 and 232 against its main trading partners, causing disruption to the global economic and trade landscape. Specifically targeting China, in August 2017, it launched a unilateral investigation under Section 301. Turning a blind eye to China's unremitting efforts and remarkable progress in protecting intellectual property and improving the business environment for foreign investors, the US issued a myriad of slanted and negative observations, and imposed additional tariffs and investment restrictions on China, provoking economic and trade friction between the two countries, said the white paper.

10:24

The white paper said that the uncertainty brought by US-China economic and trade friction made companies in both countries more hesitant about investing. China's investment in the US continues to fall and the growth rate of US investment in China has also slowed down.

Direct investment by Chinese companies in the US was US$5.79 billion in 2018, down by 10 percent year-on-year, the white paper said, citing data from the Ministry of Commerce (MOC).

In 2018, paid-in US investment in China was US$2.69 billion, up by only 1.5 percent year-on-year, compared with an increase of 11 percent in 2017.

With the outlook for China-US trade friction unclear, the WTO has lowered its forecast for global trade growth in 2019 from 3.7 percent to 2.6 percent, the white paper said, citing a WTO trade forecasts report on its website. 

10:23

The US administration has imposed additional tariffs on Chinese goods exported to the US, impeding two-way trade and investment cooperation and undermining market confidence and economic stability in the two countries and globally, according to a white paper titled China's Position on the China-US Economic and Trade Consultations issued by the State Council Information Office on Sunday.

The US tariff measures lead to a decrease in the volume of China's export to the US, which fell by 9.7 percent year-on-year in the first four months of 2019, dropping for five months in a row, the white paper said, citing data from the website of China's General Administration of Customs.

In addition, as China has to impose tariffs as a countermeasure to US tariff hikes, US exports to China have dropped for eight months in a row.

10:18

Since it took office in 2017, the new US administration has threatened additional tariffs and other measures and provoked frequent economic and trade friction with its major trading partners. In response to the economic and trade friction unilaterally initiated by the US since March 2018, China has had to take forceful measures to defend the interests of the nation and its people, the white paper noted.

At the same time, committed to resolving disputes through dialogue and consultation, China has engaged in multiple rounds of economic and trade consultations with the US in an effort to stabilize the bilateral commercial relationship. China's position has been consistent and clear - that cooperation serves the interests of the two countries, that conflict can only hurt both, and that cooperation is the only correct choice for both sides, it said.

Concerning their differences and frictions on the economic and trade front, China is willing to work together with the US to find solutions, and to reach a mutually beneficial and win-win agreement. However, cooperation has to be based on principles. There are bottom lines in consultations. China will not compromise on major issues of principle. China does not want a trade war, but it is not afraid of one and it will fight one if necessary. China's position on this has never changed, the white paper pointed out.

The white paper was issued by the Chinese government to provide a comprehensive picture of the China-US economic and trade consultations, and present China's policy position on these consultations.

10:15

The China-US commercial relationship serves as both the ballast and the propeller of the overall bilateral relationship. At stake are the fundamental interests of the two peoples, and the prosperity and stability of the world, according to a white paper released Sunday by the State Council Information Office.

Since the establishment of diplomatic relations between China and the US, bilateral trade and economic relations have come a long way, with expanding fields of cooperation at higher levels. A mutually beneficial and win-win relationship with strong complementarity and interlinked interests has been forged, benefiting not only the two countries but also the entire world, according to the white paper titled China's Position on the China-US Economic and Trade Consultations.

Given the differences in stage of development and economic system, it is inevitable that the two countries will experience differences and friction in their commercial cooperation. The history of China-US trade and economic relations has seen twists and turns and difficult situations. By adopting a rational and cooperative attitude, the two countries have managed to resolve previous conflicts, bridge differences, and render the bilateral commercial relationship more mature through dialogue and consultation.


10:12
The State Council Information Office on Sunday issued a white paper to provide a comprehensive picture of the China-US economic and trade consultations, and present China's policy position on these consultations. 
09:48

The State Council Information Office (SCIO) is to hold a press conference at 10 a.m. to brief media on the white paper "China's Position on the China-U.S. Economic and Trade Consultations" about China's stance on economic and trade talks with the United States. Wang Shouwen, Chinese Vice Minister of Commerce, and Vice Minister of SCIO Guo Weimin are expected to meet the media.


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