Di­verse trade helps China weather trade war

Global Times US Edition - - EDITORIAL -

Ac­cord­ing to the Gen­eral Ad­min­is­tra­tion of Cus­toms of China on Thurs­day, China’s US dol­lar­de­nom­i­nated ex­ports in July rose 3.3 per­cent year-on-year, beat­ing ex­pec­ta­tions. Im­ports fell by 5.6 per­cent; the fall is also lower than ex­pected. China’s over­all trade sur­plus in July was $45.06 bil­lion, ex­pand­ing by 63.9 per­cent from a year ago.

These num­bers are widely be­lieved to show that although the trade war is hav­ing a nega­tive ef­fect on China’s for­eign trade, the re­silience of China’s trade is far be­yond peo­ple’s ex­pec­ta­tions. Chinese ex­port en­ter­prises are mak­ing swift ad­just­ment, and have made progress in min­i­miz­ing the ef­fects of US tar­iffs.

In the first seven months of 2019, China’s trade in ma­jor mar­kets, in­clud­ing

the EU, ASEAN and Ja­pan, has in­creased. China’s trade growth rate in coun­tries along the Belt and Road Ini­tia­tive is higher than the over­all level. The trade of pri­vate en­ter­prises has grown rapidly, with electro­mechan­i­cal and la­bor-in­ten­sive prod­ucts all main­tain­ing growth. The Chinese econ­omy is now more ca­pa­ble of shun­ning the im­pact of a Us-launched trade war.

China does not want a long-term trade war. But if this is un­avoid­able, the Chinese econ­omy can open a new path and ex­plore room for ma­neu­ver­ing.

China’s for­eign trade will re­main dif­fi­cult in the sec­ond half of 2019 amid the po­ten­tially wors­en­ing Chin­aus trade war and the global eco­nomic down­turn. But pre­vi­ous ex­pe­ri­ences have shown that the Chinese econ­omy is among those with the strong­est re­silience. Some in the US have been ea­ger to knock China down. They will be in­creas­ingly dis­ap­pointed in the global eco­nomic con­text.

China has learned new ca­pa­bil­i­ties in ev­ery field where the US stron­garmed it. China has not ex­pe­ri­enced eco­nomic shocks which the US had an­tic­i­pated. This is the great so­ci­ety’s unique nat­u­ral en­dow­ment. China has mas­tered com­plete in­dus­trial ca­pa­bil­i­ties and opened up nu­mer­ous chan­nels to con­nect to the out­side world.

There is an ob­vi­ous dis­tinc­tion be­tween China and the US: China, prac­ti­cal and re­al­is­tic, has pre­pared for the worst; but the US has kept mak­ing un­re­al­is­tic promises and ly­ing to the pub­lic. The US is tak­ing a wrong path and plac­ing it­self in a dilemma.

Many of the US lies are in­tended to bol­ster US stock mar­kets. The ex­u­ber­ance of the US econ­omy is partly sup­ported by bub­bles, hot money and fi­nan­cial lever­age. US in­vestors will pay the price sooner or later.

The China-us trade war will be a pro­tracted one and Chinese so­ci­ety is firm about it. The US trade war won’t weaken China, but will pro­mote China’s all-round re­ju­ve­na­tion.

Eco­nomic data may be mixed, but China is get­ting stronger, a trend which the world clearly per­ceives. The Chinese econ­omy’s re­silience comes from the coun­try’s huge po­ten­tial and strong abil­ity to tap this po­ten­tial. There is no out­side force that can dis­rupt the process as long as China doesn’t stop by it­self. Some peo­ple in Wash­ing­ton refuse to ac­cept this trend, but time will teach them.

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