‘Unfair trade’ accusations distort facts

The current US administration, in its Section 301 report and other ways, stigmatizes China by accusing it of “economic aggression,” “unfair trade,” “intellectual property rights theft” and “national capitalism.”

“It is a gross distortion of the facts in China-US trade and economic cooperation. It turns a blind eye to the huge progress in China’s reform and opening-up as well as the dedication and hard work of the Chinese people,” the white paper said.

“This is disrespectful to the Chinese government and people as well as incompatible with the real interests of the American people. It will only aggravate differences and tensions, which in the end will damage the fundamental interests of both countries,” the white paper added.

It clarified six key facts about China-US trade and economic relations: the gap in trade in goods alone is not a good indicator of China-US trade and economic relations; the discussion of fair trade should not be detached from the principle of mutual benefit of the WTO; the accusation that China forces technology transfer is against the spirit of contract; China’s huge efforts and achievements with regard to IPR protection should not be dismissed; the Chinese government’s encouragement to Chinese business to go global should not be distorted as a government attempt to acquire advanced technologies through commercial mergers and acquisitions; China’s subsidy policy complies with WTO rules and should not be attacked.

In today’s world of greater globalization and widespread international production, bilateral trade and economic cooperation already extend beyond trade in goods. “If we give full consideration to these three factors — trade in goods, trade in services, and sales of local subsidiaries in the host country, trade and economic cooperation delivers balanced benefits in general for China and the United States, with the latter reaping more net benefits,” the paper said.