Sep 25, 2018 (China Knowledge) - In order to push for a more reasonable trade negotiation and solution to the escalating trade tension between China and the U.S., the Chinese government has issued a white paper yesterday expressing its bearing on trade war. The white paper encompasses the Chinese stance on their trade relations with the U.S., with facts and statistical data included to clarify accusation made by the U.S. about the Chinese trade and business practices.
19% of Chinese exports go to the U.S, making it the largest export market for China. In return, U.S. imports make up to 8% of the imports by China. Since China’s admission to World Trade Organisation (WTO), U.S. exports to China has been raising exponentially, from USD 19.18 billion to USD 129.89 billion in 2017. Main exports by the U.S. includes agriculture products such as soy beans and cotton, Boeing airplane and integrated circuits.
The Chinese officials believe that trade imbalance figures do not paint a full picture of the Chinese – U.S. trade relations. Since the deepening of ties in 2007, U.S. enjoys 3.4 times increase in services exported to China, reaching USD 57.63 billions in 2017, accounting for 20% of services imported by China. Besides that, tourists’ dollars by the Chinese in the U.S. has hit USD 33 billion in 2017, not accounting for the spending made by Chinese exchange students there.
Despite U.S. accusing China regarding for intellectual property (IP) rights and unfair trade practices, statistical data provided by the Chinese officials had actually proved otherwise.
The Trump administration has blamed China for acquiring foreign technologies using discriminatory licensing restrictions, unfair technology-transfer agreements, and unauthorized intrusion into US commercial computer networks, allowing cyber-enabled IP theft to occur, under their Section 201 trade investigation last year.
China has refuted such claims. Since the opening up of their economy, foreign businesses and investors have seen the Chinese market as one with potential, with partnership lined up to promote sharing and transfer of technology. The speed of improvement and scientific breakthrough enjoyed by the Chinese was due to the increased of investments by the government to encourage research and development. Regulation has also been in placed with 16 courts set up across Tianjin, Nanjing since 2009 to regulate and advocate IP rights in China.
The Chinese believe that escalating trade war between both countries will not bring any benefit to anyone. It will affect more than just the two countries involved. Mutual respect and understanding for each other can facilitate trade dialogue and consultation to solve the trade tension between China and U.S. The Chinese officials are also looking to seek a common ground for both countries to cooperate and pursue reasonable solutions to reduce the trade tension. However, the Chinese has also stressed the lack of effort and respect by U.S., with constant threats by President Trump, challenging China itself.
As uncertainty looms the ongoing trade war has impacted the global stock market with shares prices going down.
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