Optimism over new U.S. trade outcome

A containership is berthed at Tianjin Port's IoT-supported terminal. (Photo/China Daily)

China has maintained open lines of communication with the United States Department of Commerce, the Ministry of Commerce said on Thursday, in response to US President Donald Trump's remarks that Washington might reach a new trade agreement with Beijing.

In the face of ongoing trade tensions with the US, He Yadong, a spokesman for the ministry, said that China has reiterated its resolute opposition to the unilateral tariff measures imposed by the US, while affirming its commitment to safeguarding its legitimate rights and interests.

At the same time, China expressed its willingness to resolve outstanding issues through dialogue and negotiation, He added at a news conference.

The White House has imposed additional tariffs of 10 percent on all Chinese imports and issued restrictions on the two countries' two-way investment, among others. China has been compelled to resort to certain countermeasures.

The latest round of tariff hikes imposed by the US has expanded in scope and intensity, a clear indication that tariffs are increasingly being leveraged as a tool to bolster its fiscal revenue, said Cui Fan, a professor of international trade at the University of International Business and Economics.

In particular, the US is clearly betting that the use of tariffs can help it extract concessions from its trading partners, including China, in pursuit of its broader economic and geopolitical objectives, Cui said.

Even if the two sides eventually make progress toward a comprehensive agreement, the threat of additional tariffs is likely to persist as a bargaining chip for the US, Cui added.

"China's position on trade issues with the US has been consistent and clear. We are open to constructive dialogue and negotiation, but we will not back down when it comes to safeguarding our fundamental interests," said Zhou Mi, a researcher at the Chinese Academy of International Trade and Economic Cooperation.

The US is essentially shooting itself in the foot by pursuing these protectionist measures. The ultimate losers are the US consumers and businesses, who are bearing the brunt of the "blowback" from the trade war, Zhou said.

These tariffs are essentially a tax on US residents, driving up the costs of everything from household appliances to automobiles. This, in turn, is fueling inflationary pressures that are eroding the purchasing power of US consumers, Zhou said.

Moreover, the trade war has undermined the global competitiveness of US products, as retaliatory tariffs from trading partners like China make US goods more expensive and less attractive in overseas markets, Zhou added.

"The path forward requires the US to engage in good-faith negotiations, address the legitimate concerns of its trading partners, and work toward mutually beneficial solutions," Zhou said. "Clinging to a misguided 'America First' agenda will only serve to undermine the US' long-term economic interests."