Falsehoods in US Perceptions of China

Reality Check (Part 14 of 21) Falsehoods in US Perceptions of China https://english.news.cn (June 19 2022) Part 13 is at https://billtotten.wpcomstaging.com/2022/07/09/reality-check-part-13-of-21/ Falsehood 14 China is circumventing or breaking trade rules and its economic manipulations have cost American workers millions of jobs, harming workers and companies in the United States but also around the world. The United States will push back on market-distorting policies and practices, like subsidies and market access barriers, which China's government has used for years to gain competitive advantage. Reality Check China has faithfully delivered on its commitments made upon accession to the WTO. China upholds, builds, and contributes to the multilateral trading system. China-US economic and trade relations are mutually beneficial in nature. However, the US' wanton suppression of China in trade and investment areas has been the root cause of trade frictions between the two countries, which hurts others without benefiting themselves. * Over the past 20-plus years since joining the WTO, China has earnestly fulfilled its commitments upon accession. It has rolled out nationwide the management system of pre-establishment national treatment plus a negative list, kept expanding market access, brought down the overall tariff level from 15.3% to 7.4%, and opened up nearly 120 sectors in the service industry. In October 2021, the WTO conducted the eighth review of the trade policies and practices of China. The report of the review fully recognized China's efforts in upholding the multilateral trading system and its active role in the WTO. It spoke highly of China's achievements in such areas as trade and investment liberalization and facilitation, greater opening-up, and progress under the Belt and Road Initiative. A leading official of the United Nations Conference on Trade and Development pointed out that, over the past two decades, China has steadfastly supported the rules-based multilateral trading system, practiced true multilateralism, participated fully in WTO negotiations, steered negotiations in areas such as investment facilitation and e-commerce, and worked for WTO rules keeping pace with the times. * Embracing the trend of regional and global economic integration, China has deepened economic and trade ties with countries around the world, signing free trade agreements and stepping up the building of free trade zones. As of now, China has signed 19 free trade agreements with 26 countries and regions. * China has actively deepened supply-side structural reform. It has met the target of phasing out 150 million tons of overcapacity in the steel industry set out in the 13th Five-Year Plan two years ahead of schedule, 1.14 times the global total in slashing overcapacity of steel. The process involved the reemployment of 280,000 Chinese steelworkers, more than the total number of steelworkers in the US, Europe, and Japan. * China and the US have highly complementary economies, deeply integrated interests, and mutually beneficial economic and trade ties. In 2021, bilateral trade topped a record-breaking 750 billion US dollars. The US Export Report 2022 issued by the US-China Business Council showed that, in 2021, goods exports to China grew by 21 percent to 149 billion US dollars, supporting 858,000 jobs in the US. The 2020 Annual Business Survey Report on Chinese Enterprises in the United States released by the China General Chamber of Commerce-USA indicated that, as of 2019, CGCC's Chinese member companies cumulatively invested over 123 billion US dollars, employed more than 220,000 people, and supported over one million jobs throughout the United States. Research of the US-China Business Council showed that Chinese exports have helped bring down US consumer prices by 1 to 1.5 percent, saving each US household 850 US dollars per year. * By blaming China for its own economic problems, the US started a trade war and tariff war against China, which only backfired on itself. US tariffs against China have cost American companies more than 1.7 trillion US dollars in market capitalization and increased average household expenditure by 1,300 US dollars per year. A 2021 report by the US-China Business Council pointed out that the trade war with China has resulted in a loss of 245,000 jobs in the US. A report from Moody's Investor Service was cited as saying that American consumers bear 92.4 percent of the cost of imposing tariffs on Chinese goods. Paul Krugman, a Nobel Prize laureate in economics, incisively pointed out that US trade policy toward China has failed and tariffs harm the US more than their intended targets. On 18 May 2022, the National Retail Federation (NRF) wrote to President Biden, calling for eliminating tariffs, which, as pointed out in the letter, could reduce consumer prices by as much as 1.3 percent. Janet Yellen, the US Treasury Secretary, said that some tariffs on China hurt American consumers and businesses and that cutting tariffs was worth considering in order to lower US inflation. The obstacles to China-US economic and trade cooperation are mainly from the US side. Over 1,000 Chinese companies have been put on its lists for unfair suppression or sanction. The US Congress has put forth more than 300 negative China-related bills. The proposed Bipartisan Innovation Act, which is still being developed, essentially aims to hold back China's economic growth. * The US arbitrarily accuses China of its industrial subsidy policies, but the country itself was among the first to develop such policies, including subsidies and so on. Successive US administrations have rolled out plans to support emerging industries. Through tax relief, government procurement, and other means, the US administrations have interfered in the market to push forward cooperation between government and enterprises and advance technology transfers. In the 1950s and 1960s, the US undertook special programs to promote the development of its aerospace and military industries. In the 1990s, the Clinton administration supported the growth of hi-tech industries with the Information Superhighway plan. Such industrial policies are still being practiced in the US today. A report by the Center for Strategic and International Studies noted that the US and its allies and partners in Europe and Asia have increased subsidies to industries such as semiconductors, electric-car batteries, and pharmaceuticals to shore up support for domestic companies. * The US poses the biggest challenge to the global trading system. Following its "America First" policy, the US has refused to shoulder its due obligations under multilateral trading agreements, and withdrawn from international treaties and organizations, taking a heavy toll on the development and functioning of the global trading system. A WTO dispute settlement report has identified the US as the biggest rule-breaker, responsible for two-thirds of violations of WTO rules. The US also blocked the appointment of new judges in the WTO Appellate Body, leading to an impasse in the Appellate Body since December 2019. Source: fmprc.gov.cnEditor: huaxia2022-06-19 22:19:29 https://english.news.cn/20220619/edf2556087954b8d90440b077a3c3c21/c.html https://billtotten.wordpress.com/ https://www.ashisuto.co.jp--- To unsubscribe: List help: