Reciprocal tariffs yield no winners

Recently, the US, in disregard for widespread opposition at home and from the international community, announced that it would impose so-called ‘reciprocal tariffs’ ranging from 10 to 50 per cent on all its trading partners.

It severely infringes upon the legitimate rights and interests of nations, severely violates World Trade Organisation (WTO) rules and severely harms the rules-based multilateral trading system and disrupts the stability of the global economic order. The Chinese government strongly condemns and firmly opposes this.

The actions taken by the US violate fundamental economic principles and market norms, disregard the balanced outcomes achieved through multilateral trade negotiations and ignore the fact that the US has long benefited substantially from international trade.

Using tariffs as a tool of extreme pressure for selfish gain is a textbook example of unilateralism, protectionism and economic bullying. Its scheme of seeking exclusive gains at the expense of global interests will inflict severe damage on the world economy, as the WTO director-general predicts the tariffs announced by the US could lead to an around 1.0 per cent contraction in global merchandise trade volumes this year.

The so-called ‘reciprocal tariffs’ are neither pursuing ‘reciprocity’ or ‘fairness’, but seeking ‘America First’ and engaging in zero-sum games. In essence, the US is exploiting tariffs to subvert the existing international economic and trade order, prioritising US interests above the global common good and sacrificing the legitimate interests of countries worldwide to serve its own hegemonic agenda. Such actions will certainly be met with widespread opposition from the international community. China is an ancient civilisation and a land of ritual. The Chinese advocate treating others with sincerity and trust. We do not make trouble, but we have no fear of trouble. Pressure and threats are not the right way to deal with China. China has announced a series of countermeasures, including imposing additional 34 per cent tariffs on all US imports, filing a lawsuit with the WTO dispute settlement mechanism against the US tariffs, and adding certain US entities to export control list and the unreliable entity list, etc.

We will resolutely counter the unilateral and hegemonic actions of the US and firmly safeguard our sovereignty, security and development interests. China-US economic and trade relations should be mutually beneficial in nature, the US should conform to the common expectations of the people in the two countries and around the world. In line with the need to safeguard the fundamental interests of the two countries, the US should stop using tariffs as a weapon to suppress China’s trade and economy, and stop undermining the legitimate development rights of the Chinese.

As Chinese President Xi Jinping has said, for any country to achieve modernisation, it should pursue common development through solidarity and cooperation and follow the principles of joint contribution, shared benefits and win-win outcome.

Blowing out others’ lamps does not brighten one’s own path, nor does blocking others’ roads lengthen one’s stride. As the world’s second-largest economy and second-largest consumer market for goods, China will open its doors wider to the outside world no matter how the international situation changes. China will continue to open up to the world at a high level, steadily expand its institutional opening-up in rules, regulations, management and standards, implement high-level trade and investment liberalisation and facilitation policies, and foster a market-oriented, law-based and internationalised first-class business environment, to share its development opportunities with the world, and achieve mutual benefits and win-win results.

There are no winners in trade or tariff wars, and protectionism leads to a dead end. The world should not and will not retreat to mutual isolation and division. It is the shared responsibility of the international community to make economic globalisation more open, inclusive, universally beneficial and balanced. In the face of the serious negative impact of the US tariff policy, countries around the world should strengthen communication, coordination, solidarity and cooperation, uphold genuine multilateralism, uphold the international system with the United Nations (UN) at its core and the multilateral trading system with the WTO at its core, support an equal and orderly multipolar world and promote a universally beneficial and inclusive economic globalisation, and work together to build a community with a shared future for mankind. We believe that the vast majority of countries that value fairness and justice will stand on the right side of history, making decisions that serve their own interests.

The writer is Chinese ambassador to Pakistan.