Experts interpret declaration by Beijing on trade

The US approach toward trade with China is its attempt to restrain the country through economic levers, according to one expert reacting to Beijing’s release of a white paper on trade relations on Monday.
“The US’ China strategy is a revised form of containment that uses economic warfare more prominently than in the past,” said Clifford?A.?Kiracofe, educator and former senior professional staff member for the US Senate Committee on Foreign Relations.
The 36,000 Chinese-character paper addresses mutually beneficial and win-win China-US cooperation in the trade and economic fields; a clarification about China-US trade and economic relations; the trade protectionist practices and trade “bullyism” of the US administration; the damage from the improper practices of the administration to the global economy; and China’s position on trade.
“US investment in the manufacturing sector in China is fading, owing to labor costs and other factors.?So Trump’s trade war appears to be about helping Wall Street penetrate China’s financial sector,” said Kiracofe, who called the white paper timely and important. “Thus, we plainly see this bullying US economic warfare strategy attempting to promote the hegemony of finance capitalism.
“Another feature of this US economic warfare strategy appears to aim at restraining Chinese technological innovation and development,” Kiracofe said.
“Washington appears to reject the idea of the peaceful coexistence of different economic systems.?Its idea of globalism is one-sided and zero-sum. But instead, globalism should be non zero-sum and win-win,” said Kiracofe.
Frank H. Wu, William L. Prosser Distinguished Professor at the University of California Hastings College of the Law and the president of the C-100, said that “trade has been good for human societies throughout history”.
“Trade wars have almost always been bad, regardless of which side you are on. In American history, the Smoot-Hawley Act in 1930 accelerated the Great Depression. From today’s vantage point, just about everyone agrees those tariffs made matters worse,” he said.
Roger Wang, C-100 chairman, said dealing with the ongoing trade friction requires patience, an open mind and communication, “then we will see gradual changes”. His group is a non-governmental organization that aims to build bridges for US-China understanding and friendship.
Kevin Liu is director of the DHH Law Office in Washington, whose firm is involved in bilateral trade issues.
“The?publication?of the white paper revealed to the public the true purpose of the?US?in the trade war last year,” Liu said. “The trade sanctions?of the US?have seriously damaged the economic interests of China and the?US.
“Any divergence under the WTO framework?should have?been?resolved through consultation and negotiation.” he said. “The unilateral US sanctions have made us more aware of the fact that while objecting to the sanctions, we?have to make a?plan for the strategic transfer of domestic export industries?as well.”
A new 10 percent tariff on $200 billion of Chinese goods went into effect on Monday.
China retaliated with tariffs of 5 to 10 percent on $60 billion of US goods such as meat, chemicals, clothes and auto parts. The paper said the two countries are at different stages of development and have different economic systems, and therefore some level of trade friction is natural.
However, the new administration of the US government has advocated “America First” since taking office in 2017, and has abandoned the fundamental norms of mutual respect and equal consultation that guide international relations, the document said.
“Rather, it has brazenly preached unilateralism, protectionism and economic hegemony, making false accusations against many countries and regions, particularly China, intimidating other countries through economic measures such as imposing tariffs, and attempting to impose its own interests on China through extreme pressure,” the text stated.

Contact the writers at leshuodong@chinadailyusa.com