State Council Responds to Trade Conflict

On September 24 China's State Council issued its first official response to the escalating Sino-us trade conflict.

It came in the form of an official document that, according to Xinhua News Agency, aimed to clarify the bilateral trade relationship and China's position on the trade friction.

The report said a sound Sino-us trade relationship was of great significance to global economic development and stability. It said as US President Donald Trump advocated his “America First” strategy and suppressed some rising countries, especially China, unilateralism, protectionism and economic hegemony had made a comeback, which had severely damaged the bilateral relationship and fair multilateral trade.

The report denied the US charge that China has purposely produced a trade surplus and forced foreign companies to transfer their intellectual property in return for access to the vast domestic market. It emphasized China was making efforts to enhance intellectual property protection, such as improving laws and tightening the crackdown on intellectual property theft. The report also criticized the US for distorting trade competition and obstructing free trade.

It concluded saying China would always be open to talks based on eight “insistences,” including serving national interests, protecting intellectual property and foreign investors, promoting multilateral trade, and deepening reform and opening-up.