COMMENT: The move by the US Administration to impose an additional 25 per cent tariff on US$34 billion worth of Chinese goods is a blatant violation of the World Trade Organisation (WTO) rules. It disrupted the normal international trading order, undermined the free trading system and multilateral trading rules, and violated the law of the market. It will cause fluctuations in the global market and hamper global economic recovery. More transnational corporations, small and medium-sized enterprises and consumers around the world will be hurt. And a lot of industries and the general public in the United States have come to realise that they will also suffer a lot from it.
This string of unilateralist as well as trade and investment protectionist measures taken by the US has aroused wide concern and condemnation worldwide and incurred countermeasures and retaliatory moves from many countries. Even countries that are not directly involved in the trade war will find themselves vulnerable in an uncertain international trading system. Ultimately there will be no winners out of a trade war.
China does not want to fight a trade war, nor will it initiate one. But when China's legitimate interests are treated unfairly, China is justified in taking necessary countermeasures to resolutely safeguard its own interests.
The US has been slamming China's economic and trade policies as the pretext for its unilateralist and protectionist practices. However, the facts suggest the opposite.
Since its accession to the WTO, China has comprehensively fulfilled its commitments to the WTO. China has substantially reduced import tariffs. By 2010, China has fulfilled all of its tariff reduction commitments, reducing the average tariff level from 15.3 per cent in 2001 to 9.8 per cent. It cut the average tariff rate of agricultural products from 23.2 per cent to 15.2 per cent, about one fourth of the global average and far lower than those imposed by the WTO's developing members (56 per cent) and developed members (39 per cent). China makes Intellectual Property Rights (IPR) protection the centrepiece for improving the property rights protection system. An IPR legal system that conforms to WTO rules and suits national conditions of China has been built.