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CHINADAILY Editorial

China can protect its interests even if a trade war breaks out: China Daily editorial

chinadaily.com.cn | Updated: 2018-03-25 18:35
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China's response after US President Donald Trump signed a memorandum on Thursday which imposes tariffs on Chinese imports is clear: The country will take countermeasures and the United States will pay a heavy price for its decision if it does not "pull back from the brink".

Speaking with US Treasury Secretary Steven Mnuchin by phone on Saturday morning, Vice-Premier Liu He said that China is "fully prepared" and is "capable of safeguarding its national interests".

Liu also pointed out the US is violating global trade rules, and its actions are detrimental to the interests of China, the US, and the whole world.

White House National Trade Council Director Peter Navarro has claimed that China benefits far more from trade relations with the United States rather than the reverse, meaning retaliation might be difficult for China, but that ignores the trade in services from which the US clearly benefits more, as well as China's consistent stance that it will resolutely oppose unilateral trade actions and it will not give in to threats or blackmail.

US Commerce Secretary Wilbur Ross has suggested that what the US is doing is seeking an advantageous position prior to negotiations: "There may be some firing shots over the bow and things like that, but I believe at the end of the day, this will end up in a negotiation settlement."

But by using threats as a means to get more concessions in any negotiations, the Trump administration is misreading the situation.

The US should take China's resolve and capability to defend its own legitimate rights and interests seriously and act rationally. Beijing has repeatedly sought dialogue with Washington to amicably settle the trade differences between them.

And as a country that has always championed free trade, which has greatly benefited the country, as well as the rest of the world, China seeks a global trading system that is balanced, fair and inclusive.

However, rather than accepting that trade is beneficial to all parties concerned, the Trump administration seems to believe that trade is zero-sum competition in which the US should be the only winner.

The international community's concerns over the US' reckless and dangerous policies and actions highlight how important the world's two largest economies are to global trade. The US should avoid placing China-US trade relations in danger and pull back from a trade war.

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