by Linda Straker
- China says US engaging in malicious competition
- Cold War approach that can set a vicious competition against China
- Ongoing trade dispute and imposing of high tariffs in violation of international trading conventions
Zhao Yong Chen, China’s Ambassador to Grenada, has accused the current USA administration of engaging in malicious competition by completely banning Huawei, creating obstacles to economic and scientific cooperation and exchange between the 2 countries.
Claiming that China is made a scapegoat by the United States, increasing serious economic and social inequality, Ambassador Zhao said that this type of competition is extremely unfair. He called for the United States to correct its mistakes in order to get the economic cooperation between the two major powers back on the right track and promote win-win cooperation.
Addressing a news conference at the embassy in St George’s on Thursday, the ambassador provided a number of reasons why the ongoing trade dispute and imposing of high tariffs is not only a violation of international trading conventions, but adopting of a Cold War approach and creating a hostile atmosphere with China.
“The United States imposed high tariffs claiming excuses of China’s trade deficit with the United States is a total deviation from the market economic rules,” said the ambassador, who explained that by trumpeting “America First”, the current US administration raises its bets in the course of 11 rounds of negotiations with China, demanding China meet its willful wishes.
“Irritated by refusal from China, the US made a big noise in the world, attacking China backing off promises and quickly introduced administrative measures to impose high tariffs in an attempt to suppress China. This kind of bullying practice and style in the economic field is typical protectionism and unilateralism, a violation not only to the rules of World Trade Organisation but also to common practice of market economy,” he told reporters.
Claiming that the US has gained huge profits from China’s import and export, the ambassador said that for a long time, a large number of high-quality and low-priced goods have been exported from China to meet the needs of US consumers.
“The living standards of the American people have been greatly improved, and China also obtained corresponding labour income and remuneration. The most important fact is that China uses the foreign exchange generated by trade surplus to purchase large amounts of US Treasury bonds to help the US maintain ultra-high consumption. This is a win-win result,” he said.
Explaining that the United States imposes restrictions on high-tech and cutting-edge technology export to China is another form of discriminatory and unfair trade practice, the ambassador said that the US has long been reluctant to sell goods with high added-value to China, setting limits on itself and reducing exports.
“This is a major source of the trade imbalance between the two countries. It is also a manifestation of discriminatory unequal trade. The United States should review its policy mistakes over the years rather than making useless effort to take China an excuse to mislead the people,’ he said.
“In fact, as long as the United States pursues the belief of win-win cooperation, breaks trade barriers and restrictions conduct trade and investment with China on an equal and fair basis, the trade imbalance can be solved through friendly consultations,” said Zhao who described the issue as not a big problem.
“Although fully aware of the cure for the disease, the United States adopts a wrong prescription. Overdose will eventually become a poison, incurring harm to all parties,” he said.