Ambassador of China: US will face intensified economic downturn if it persists in its tariff policy
Unilateral tariff barriers are doomed to failure, and US hegemony will eventually reap the harvest of its actions
Not long ago, the United States once again showed self-will in the international trade arena: with no reasonable basis, it grabbed a tariff cudgel and significantly increased duties on Chinese goods exported to the US under the pretext of the fentanyl-related problem, thus erecting unilateral tariff barriers again. This move is actually an attempt to restrain China's development through trade measures and at the same time distract attention from the contradictions developing within the United States. The consequences of this not only seriously undermine the international trade order, but also clearly demonstrate the ugly face of the United States seeking to protect its interests through hegemonic actions. In the end, the United States will simply harm itself by plunging into a swamp of recession, from which it will be difficult to get out.
Measures that worsen relations
The increase in the US duties is a typical manifestation of unilateralism and protectionism.
The fentanyl-related problem is rooted in the failure of internal social governance in the United States, and the American side is fully responsible for that. However, the United States blames China for the fentanyl abuse domestically, and it uses this matter as an excuse to increase duties – which is a typical example of ‘shifting responsibility’. In fact, the Chinese government has long included fentanyl in the list of controlled narcotic drugs and psychotropic substances of Class I, and the country co-operates with the international community in the fight against the illegal trade in fentanyl. The increased US duties on Chinese goods will not effectively solve the problem of fentanyl abuse: on the contrary, such unilateral actions worsen relations between China and the United States and weaken the countries’ co-operation in the fight against drug crime. Such a tariff policy of the American government explicitly places political goals above the economic interests of the country, transforming itself into an unconscionable ‘protectionist farce’.
The increase in the US duties is a clear manifestation of hegemonism and bullying.
Looking back at history, the United States has long used its advantages in the economic, military and other spheres to dictate its will to other countries in international affairs. In the trade sphere, the Section 301 investigation initiated by the previous US administration and the measures to raise tariffs have seriously disrupted the normal order of trade and economic relations between China and the United States. Such actions have already been recognised by the World Trade Organisation as unfair practices that violate WTO rules. However, the United States not only failed to learn its lessons and correct its mistakes, but went even further – once again using fentanyl as an excuse to continue the unilateral logic of trade bullying. This reflects the ‘alarming disorder of hegemonism’ of a number of American politicians who view the rapid growth of China and other developing countries as a serious threat to their global hegemony. In order to maintain shaky unipolar hegemony, they are ready to do anything to suppress the development of other states.
Disruption of the global trade order
The negative consequences of the US unilateral tariff barriers are already beginning to manifest themselves.
At the domestic level, American consumers are bearing the brunt of the increased costs caused by higher duties on Chinese goods, and this undoubtedly increases the financial burden for ordinary Americans – further reducing their purchasing power and affecting the stability and prosperity of the US domestic consumer market. At the same time, the increase in duties has led to a sharp growth in the cost of imported raw materials for American companies, which significantly strengthened the pressure on their production activity. In order to survive, many companies are forced to reduce production facilities, lay off employees and cut salaries, and some even relocate their production lines to other countries. It is not just resulting in serious job losses in the United States, but is also weakening the competitiveness of American industry in the global market. Internationally, the US unilateral tariffs seriously disrupt the global trade order and destroy the favourable atmosphere of international economic co-operation. In order to resist the protectionist actions of the United States, many countries are forced to take retaliatory measures, which further intensify global trade tensions and increase risks and uncertainties for the global economy.
While the global economy is in a critical period of difficult recovery, the United States continues to persistently pursue its unilateral tariff policy, and this undoubtedly creates huge obstacles to the development of the global economy.
The United States should reflect deeply on its erroneous actions, abandon outdated thinking of unilateralism and protectionism, and return to the right path of equal dialogue, fair competition and mutually beneficial co-operation. China and the United States – being the world’s two major economies – bear an important responsibility to promote global economic development. Both sides should adhere to the principles of mutual respect and equal consultations, act in accordance with economic laws and market rules, actively expand and deepen mutually beneficial co-operation in the trade and economic sphere, jointly maintain the stability of global supply chains and make a positive contribution to the recovery and development of the global economy. If the United States continues to persist in pursuing its unilateral tariff policy and hegemonic actions, it will face an increased economic downturn, a decline in international status and other serious consequences – eventually reaping the harvest of its actions.
By Zhang Wenchuan, Ambassador Extraordinary and Plenipotentiary of the People's Republic of China to the Republic of Belarus
