There are no winners in a trade war. The US should abandon it

Workers inspect newly assembled cars at a Beijing Benz Automotive factory in Beijing. AP

Recently, the US government ignored the rules of the World Trade Organisation as well as widespread opposition from the international community, when it imposed high tariffs on trading partners including China. This move has seriously undermined the global trade order, and it has harmed the interests of enterprises and people in various countries.

Tariff wars and trade wars should not become tools for great-power competition, nor should they be used for domestic political games. China urges the US to abandon the zero-sum game mentality, cancel unilateral tariff measures, and resolve trade differences through consultations in an equal, respectful and reciprocal manner.

At present, international unilateralism and protectionism led by the US are on the rise, and multilateralism is facing challenges. The US undermines the concept of “national security”, politicises economic and trade issues, and uses tariffs as a weapon to exert extreme pressure and seek private interests. This zero-sum thinking does not help solve any global challenges. History has repeatedly proved that unilateral tariff barriers will only push up inflation, inhibit the stability of the global supply chains, and greatly increase the risk of global recession.

China is willing to work with other nations to oppose any country’s use of unilateral measures to replace multilateral consultations

The high costs will end up being jointly borne by all countries. There are no winners in a trade war, and there is no way out for protectionism. Multilateralism is the inevitable choice to solve the current difficult challenges.

Since the Second World War, the global economic and trading system led by the US has helped it gain the largest share of the pie. Globalisation has created huge profits for American multinational companies, provided low-priced goods for American consumers, and supported the US’s international status. As an important pole and major beneficiary of the world economy, the US should assume the responsibility of promoting global co-operation and maintaining fair trade.

However, the US has gone the other way, imposing unilateral sanctions on other countries and taking protectionist measures on the grounds of putting “America First”. It is trying to reshape international trade rules through unilateralism and economic coercion, which is causing more and more countries to lose trust in the US’s international commitments. This is leading to fragmentation of the international trading system.

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No matter how the external situation changes, China always practises true multilateralism, adheres to opening up, and firmly supports the principle of free trade and the multilateral trading system.

China has held seven consecutive International Import Expos, reduced the number of restricted sectors for foreign investment, and promoted the construction of an open world economy with practical steps. China will open its door wider and wider over time. It will keep updating its rules, regulations and standards, implementing policies that liberalise high-level trade and facilitate investment, and sharing the dividends of its development with the rest of the world.

Openness and co-operation are the trends of history. People seek mutual benefit and win-win results. As it faces counter-currents to globalisation, the international community needs unity more than ever.

China is willing to work with other nations to oppose any country’s use of unilateral measures to replace multilateral consultations; defend the multilateral trading system with the WTO at its core; strengthen co-operation within the ”Global South”; resist the impact of protectionism; deepen co-operation through the Belt and Road Initiative; and achieve mutual benefit and win-win results through connectivity.