III. China is committed to credible consultations based on equality
and mutual benefit
The Chinese government rejects the idea that threats of a trade war and continuous tariff
hikes can ever help resolve trade and economic issues. Guided by a spirit of mutual respect,
equality and mutual benefit, the two countries should push forward consultations based on
good faith and credibility in a bid to address issues, narrow differences, expand common
interests, and jointly safeguard global economic stability and development.
(I) Consultations should be based on mutual respect, equality
and mutual benefit
It is only natural for China and the US, the two largest economies and trading nations in
the world, to experience some differences over trade and economic cooperation. What truly
matters is how to enhance mutual trust, promote cooperation and manage differences. For the
good of the common interests of the two countries and global trade order, and in a strenuous
effort to push forward the economic and trade consultations, China remains committed to
resolving issues through dialogue and consultation, responding to US concerns with the
greatest patience and sincerity, properly handling differences while seeking common ground,
and overcoming obstacles to practical solutions. During the consultations, in accordance with
the principle of mutual respect, equality and mutual benefit, China’s only intention is to reach
a mutually acceptable deal.
Mutual respect means that each side should respect the other’s social institutions, economic
system, development path and rights, core interests, and major concerns. It also means that one
side should not cross the other’s “red lines”. The right to development cannot be sacrificed,
still the less can sovereignty be undermined. As regards equality and mutual benefit, we must
ensure that the two sides in the consultations operate on an equal footing, that results are
mutually beneficial, and that any final agreement is a win-win one. Negotiations will get
nowhere if one side tries to coerce the other or if only one party will benefit from the
outcomes.
(II) Consultation involves working toward the same goal in good faith
Consultation calls for mutual understanding and genuine effort from both sides.
Consultation is a process where the parties concerned seek consensus or make compromise
through discussion. Many factors are at play in consultation. It is perfectly normal during
consultations for the parties to react differently to various changes at different stages based
on their own interests.
The Chinese government believes that economic and trade consultation is an effective
way to solve issues. None other than engagement with goodwill and a full understanding of the
other’s position can contribute to success. Otherwise, it will be hard to reach a sustainable and
enforceable deal as the parties will not find the ground for a long-term and effective agreement.
Good faith is the foundation of consultation. The Chinese government has engaged in
these consultations with the US with the utmost credibility and the greatest sincerity. Attaching
great importance to US concerns, China has worked hard to look for effective paths and find
ways to address differences. The 11 rounds of high-level consultations have made significant
progress. The outcomes of the consultations have not only served the interests of China, but
also those of the US, as a result of both sides’ efforts to pull in the same direction. China has
kept its word during the consultations. China has emphasized repeatedly that if a trade
agreement is reached, it will honor its commitments sincerely and faithfully.
(III) China will not give ground on issues of principle
Every country has its own matters of principle. During consultations, a country’s sovereignty
and dignity must be respected, and any agreement reached by the two sides must be based on
equality and mutual benefit. On major issues of principle, China will not back down. Both
China and the US should see and recognize their countries’ differences in national development
and in stage of development, and respect each other’s development path and basic institutions.
While no one expects to resolve all issues through one single agreement, it is necessary to
ensure that any agreement will satisfy the needs of both sides and achieve a balance.
The recent US move to increase tariffs on Chinese exports does not help to solve bilateral
trade issues. China strongly opposes this and has to respond to safeguard its lawful rights and
interests. China has been consistent and clear on its position, that it hopes to resolve issues
through dialogue rather than tariff measures. China will act rationally in the interests of the
Chinese people, the American people, and all other peoples around the world. However, China
will not bow under pressure and will rise to any challenge coming its way. China is open to
negotiation, but will also fight to the end if needed.
(IV) No challenge will hold back China’s development
China’s development may not be all smooth sailing. Difficulties or even perils are inevitable.
Whatever the future might bring, China is confident of meeting challenges head on, turning risks
into opportunities, and opening new chapters.
China remains committed to its own cause no matter how the external environment changes.
The fundamental solution to economic and trade tensions is to grow stronger through reform and
opening up. With the enormous demand from the domestic market, deeper supply-side structural
reform will comprehensively enhance the competitiveness of Chinese products and companies.
We still have sufficient room for fiscal and monetary policy maneuvers. China can maintain
sound momentum for sustainable and healthy economic development, and its economic prospects
are bright.
China will continue to deepen reform and opening up. China’s door will not be closed; it will
only open even wider. President Xi Jinping announced in his keynote speech at the opening
ceremony of the Second Belt and Road Forum for International Cooperation that China would
adopt a number of major reform and opening-up measures, strengthen institutional and structural
arrangements, and promote opening up at a higher level. Measures to be taken include expanding
market access for foreign investment in broader areas, strengthening international cooperation on
intellectual property protection, increasing imports of goods and services, implementing more
effective international coordination on macro-economic policies, and putting more focus on the
implementation of opening-up policies. A more open China will have more positive interactions
with the world, which in turn will advance the development and prosperity of both China and
the world.
