Win-win or Multi-win Cooperation: A Major Trend of the Development of World Civilization

NPC Deputies and CPPCC Members Talk about China-u.s. and China-europe Trade

“Cooperation is the major trend”

Fu Ying, spokesperson of the 5th Session of the 12th NPC

Cooperation is still the major trend of China-u.s. relations. Since some U.S. senators have expressed great concerns about the widening China-u.s. trade deficit, we have made some analyses and discussed with them. So, no matter what, we should solve problems through further expanding the trade volume.

“Be confident about China-u.s. relations”

Gao Hucheng, a member of the CPPCC National Committee and deputy director of the CPPCC Subcommittee for Hong Kong, Macao and Taiwan Compatriots and Overseas Chinese

In 2016, the total trade volume between China and the U.S. exceeded US$510 billion, not including transit trade. Currently, U.S. investment in China has added up to US$87 billion, while Chinese investment in the U.S. has grown so vigorously in recent years that it has surpassed US$50 billion. The two countries are seeing substantial progress, especially in the fields of people-to-people exchanges, the service trade, shipping, tourism and overseas education. In addition, the two countries have streamlined their visa processes. A plane takes off to cross the Pacific Ocean every 17 minutes. Thus, I would bet that a trade war is not a wise option for either China or the U.S. China doesn’t want a trade war, so I hope the U.S. government, entrepreneurs and people of insight will think it over carefully. Over the past 38 years, since China and the U.S. officially established diplomatic relations, the two countries have overcome many obstacles and have never stopped moving forwards in developing their relations. So, we should be confident about the future of China-u.s. relations.

“Address difficulties in foreign trade by transforming industries”

Yin Zhongqing, a member of the NPC Standing Committee and vice-chairperson of the Financial and Economic Affairs Committee of the 12th NPC

China’s foreign trade is closely related to the overall international situation, as well as the policies of the Trump administration. China became a member of the WTO in 2001. According to Article 15 of the Protocol on the Accession of the People’s Republic of China, the anti-dumping investigation into China’s exports can use “methodology that is not based on a strict comparison with domestic prices or costs in China.” Also according to this article, “the provisions shall expire 15 years after the date of accession,” which means December 2016. However, China has yet to be recognized as a market economy by some countries, a manifestation of severe protectionism in global trade. Though the uncertainty confronting China’s foreign trade in 2017 will be unprecedented, development in recent years has shown that China’s foreign trade is dominated by its own structure. The major problem facing China’s foreign trade at present is that the transformation of China’s industries is not yet finished, and there is a lot of work to be done.

“China is not afraid of a trade war”

Zhou Hanmin, a member of the Standing Committee of the CPPCC National Committee and vice chairman of the Shanghai CPPCC Committee

Globalization is a very strong tendency that has continued very well since the end of World War II. That is why the IMF, the World Bank and the WTO have all played very important roles in promoting global economic development. Of course, on one hand, we can identify many positive aspects of globalization. On the other hand, we do recognize that globalization has its own shortcomings. The shortcomings should be overcome as it develops. There is no other possible scenario.

The China-eu and China-u. S. bilateral trading partnerships have benefited all parties involved very well. For instance, China is the world’s largest manufacturer, and that is why we have exported so many different goods needed by people in the U. S. and the EU. Conversely, we have imported a tremendous amount of goods and services from both the U. S. and the EU. Some countries try to emphasize the deficit on their own side. However, they focus only on the trade of goods; if you take trade of services as another example, the story is quite different, because the deficit is on the Chinese side, not on the EU or the U. S.

The WTO, as well as its predecessor the GATT, has played a key role in solving quite a lot of problems as world trade has developed. That is why the world is still in order. Therefore, any movement towards what we call anti-globalization, or counter-globalization, will not be followed or supported by China. On the contrary, China will still strongly support the idea of globalization, with its major principles like national treatment, non- discriminative treatment, opening up the market, and so on and so forth.

However, China is not afraid of a trade war. As far as a trade war is concerned, it will jeopardize every country in the world, including the country or the country group that initiates that kind of trade war. However, there are no circumstances under which China will involve itself in a so- called trade war. We will do our utmost to avoid any such encounters. The only way to solve problems is to talk, to discuss, to negotiate and to compromise.

“International trade is a win-win rather than a win-lose situation”

Ke Bingsheng, a member of the CPPCC National Committee and president of China Agricultural University

Free trade enables every country to make best use of its resources and to take advantage of its competitive strengths. For China, we cannot discount trade, because looking at China as part of the bigger picture, we lack land resources and water. For example, soybean imports play a very important role for China. Some people have argued that we have imported a lot

of soybeans, but we have a big supply of maize and corn. Why do we not decrease our corn production and instead increase our soybean production? That is not a political decision, and cannot be decided by the government. Decisions and adjustments of this kind are made by farmers themselves. I think the income factor is very important. I think it is a pattern of international trade. Each country produces according to its own competitive advantages. Now, internationally, we can see a win-win rather than a win-lose situation.

“Promote exports of high-end products”

Zhou Guohui, an NPC deputy and director of the Science and Technology Department of Zhejiang Province

According to the current situation, trade protectionism will probably affect China’s exports for a long time. Since the international environment is uncertain, we have to change by adjusting our trade structure and reforming related export rules. In recent years, exports of high- end products have increased in Zhejiang Province, but this is still not enough. The majority of them are still low- and middle- end products. Thus, we have to further improve the technological and cultural content of our exports.

“The Anti-globalization trend will influence global trade”

Kong Xiaoyan, an NPC deputy and director of the Tianjin Property Rights Exchange

Brexit and Trump’s election are two of the major outcomes of anti-globalization, an increasingly popular trend. Some countries have blindly blamed globalization for their domestic problems. An important part of globalization is trade. As a result, global trade will suffer in one way or another from this trend, meaning that China’s foreign trade will definitely encounter more problems.

“Protectionism has no Future”

Li Ruogu, a member of the CPPCC National Committee and former president of the Export-import Bank of China

I think it is very hard to predict that protectionism has a future. I think the world economy has been globalized. It is difficult to go back on that, but we are certainly facing some difficulties at this moment. We will face some setbacks. But eventually, I think that international trade and economic cooperation cannot be stopped. Globalization is the future of world economic development. So, based on very general comments of this kind, I think that trade between China and the United States, Europe or other countries and regions may experience some decline or difficulties. But in the future, I think that as the economy develops and Europe overcomes the influence of its financial crisis, global trade, as well as China’s trade with Europe and America, will have a brighter future.

“Trade protectionism will impede the progress of human civilization”

Jia Kang, a member of the CPPCC National Committee and a renowned economist

Trade relations between China, the U. S. and Europe are the most important partnerships in the world. China is a developing country, whereas the U. S. and the EU are developed economies. But these multilateral relations benefit each other, and are carried out according to “comparative advantage.” Certainly, there are some competitions and conflicts. But win-win situations are the norm. Not only China, but also the U. S. and Europe can gain from this kind of “inclusive growth,” while other economies can be driven to develop.

Therefore, we need to pay attention to the trend of protectionism. Trade protectionism will hinder the development of human society and impede the progress of human civilization. It is very interesting that developed economies, which previously appealed for greater openness, now tend to promote protectionism. I think this turn is unreasonable. All parties should recognize that movement towards win-win cooperation is the primary direction of world development. And more negotiations and deeper cooperation are the only way to overcome the present difficulties.

“A trade war would hurt both”

Chi Fulin, a member of the CPPCC National Committee and president of the Hainan-based China Institute for Reform and Development

Since the Trump administration promised “America First” and trade protectionism sprang up worldwide, a trade war between China and the U. S. has seemed unavoidable to some extent. However, it will hurt us both. For example, President Trump has declared he will impose 45-percent tariffs on imports from China, which would not be good for the U. S. either. Thus, it is likely that the U. S. will decide against it eventually.

This year, many European countries will hold national elections, which will increase complications and uncertainties for global trade. In such circumstances, China should strengthen its cooperation with the EU, especially in investment agreement negotiations, the Belt and Road Initiative and discussions on the feasibility of a China-eu free trade zone, which are not only important for the EU and China, but also for improving the structure of global governance.

“China should actively safeguard its rights in the international community”

Zong Qinghou, an NPC deputy and chairman of Wahaha Group

The recovery of the world economy largely relies on China, not vice versa. So, no country has the ability to impose economic sanctions on China, nor would they dare to. On one hand, we should resolutely implement our policy of opening up and unswervingly support globalization; on the other hand, China should safeguard its own legitimate rights and seek joint development through global trade rules and countermeasures on foreign trade under the principle of equality and mutual benefit.