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Duowei: China Can’t Give the “Reciprocity” That the United States Wants in Trade Negotiations

Duowei, a Chinese government controlled news media stationed in North America, published an article stating that, in the Sino-U.S. trade negotiations, China cannot give the U.S. “reciprocity.” The article said, “As long as it meets the needs of economic and social development, China does not mind forming a reciprocal relationship with the United States on market rules.“

“However, China cannot achieve full reciprocity with the United States in terms of market access and industrial policies. First, China still belongs to developing countries. Under the WTO’s trade rules, China has the right to set up barriers to market access and tariff policies. Second, China’s transition from a planned economy to a market economy has been relatively short and China has developed a unique economic system that cannot be aligned with the U.S. economic system. Finally, China’s development of technology is far less than that of the United States. It is unfair to adopt the same industrial policy for the development of Chinese industry. Because the United States has absolute advantages in capital and technology, the United States is keen to promote trade liberalization and market opening. However, major economies around the world have set different levels of tariff and non-tariff barriers in order to protect their own economic interests. According to WTO data, the main developed economies have higher barriers than the United States, both in terms of tariff barriers and non-tariff barriers. Therefore, the United States’ requirement of trade equivalence will inevitably damage the fairness of trade.”

“In market openness and industrial competition policy, China cannot give the reciprocal relationship that the United States wants. In order to expand openness and develop the economy, China will make compromises in some areas. At the same time it will use external pressure to promote internal reforms. However, due to the huge differences in the level of development and in the political systems between China and the United States, China and the United States are destined to be unable to establish a comprehensive ‘reciprocal’ trade relationship.”

Source: Duowei, April 10, 2019