Bilateral ties have 'produced a win-win situation for both countries': official
A U.S. government report that said China's accession to the WTO harmed its interests drew strong rebuttal from Chinese officials and experts on Thursday, who urged the U.S. not to blame China for its surging trade deficit in recent years.
Experts noted that the economic and trade relationship between the two nations is mutually beneficial and economic globalization is now an irreversible trend.
China-U.S. economic ties have "produced a win-win situation for both countries and their citizens," and China is not the only country receiving the benefits, China's Ministry of Commerce (MOFCOM) spokesman Sun Jiwen said at a press briefing on Thursday.
The comment comes after the U.S. Trade Representative submitted a document on annual trade policy agenda to Congress on March 1, claiming that China's joining the WTO harmed the economic interests of the U.S., as the country's trade deficit has skyrocketed and manufacturing jobs have declined since China joined the WTO in 2001.
Referring to the U.S. withdrawal from the Trans-Pacific Partnership (TPP) in January, the report said the Trump administration would "pave the way for potential bilateral talks with the remaining TPP countries," and rely less on the WTO's dispute settlement system.
However, Sun noted that along with the increase in China's exports to the U.S., the country's exports to China have also surged in the past decade, with an annual growth rate of 11 percent. China has also become the U.S.' fastest-growing export destination after the North American market.
In terms of service trade, U.S. exports to China expanded 15 times from 2001 to 2006, with trade surplus growing 29 times, according to a statement on the MOFCOM's website.
Bai Ming, a research fellow at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times Thursday that the U.S. should not attribute its trade deficit to China, as "a myriad of U.S. companies have built factories in China and their manufacturing goods account for a large proportion of China's exports to the U.S."
Sang Baichuan, director of the Institute of International Business at the University of International Business and Economic, noted that it is fairer to say that the U.S.' trade deficit was a result of "its manufacturing industry outflow amid its rising labor costs."
Besides, "most Chinese imports from the U.S. are high value-added tech products, a boon for the country's high-tech industries and high-level skilled talents," said Bai, noting that the trade relationship between China and the U.S. is a complementary rather than a competitive one.
Sun cited statistics from the U.S.-China Business Council (USCBC) which show that the bilateral trade has created 2.6 million jobs in the U.S.
Meanwhile, investment by Chinese companies in the U.S. totaled $50 billion as of the end of 2016, creating around 100,000 job opportunities, the statement noted.
In a similar vein, U.S. firms are also riding on the boom of China's economic development, Sang told the Global Times on Thursday.
Currently, around 90 percent of U.S. enterprises have achieved profitability in their businesses in China, said the MOFCOM statement, citing a report published by the USCBC in October.
Economic globalization
Sun also said at the press briefing that economic globalization is "an irresistible trend" associated with technological breakthroughs and the improvement of social productivity.
He cited a speech by President Xi Jinping at the World Economic Forum in Davos, Switzerland in January, where Xi said that instituting trade protectionism measures is like locking someone in a dark house to stay away from winds and rains. "But such a move also isolates the person from sunshine and air," Xi said.
Sang noted that the WTO dispute settlement system is a boost to global fair trade practices. If the U.S. does not abide by WTO rules, it will cause chaos in its foreign trade, and eventually hurt its economic interests, Sang said.
Bai also noted that in a globalized era, the U.S. should not compare its trade structure with other countries on a one-on-one basis. "The U.S. may record a trade deficit with China. But, the country is showing a mushrooming trade surplus with a number of other developing nations like Brazil."
Experts also expressed concerns over China-U.S. economic relations in the future. "U.S. companies in China may demand wider and deeper market access, posing a potential hurdle to closer bilateral economic ties," Sang said.
