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Zheng Zeguang

The US administration’s announcement of “reciprocal tariffs” targeting all its trading partners instantly sent global markets into turmoil, wiping trillions off global market value. It delivered a devastating blow to the global economy and the multilateral trading system.
It seriously undercut the efforts of countries striving to grow their economies, lower the costs of living and create jobs, dimming the development prospects of Global South countries in particular.
Global leaders, economists and financial institutions joined a chorus of concern and opposition. In its latest World Economic Outlook published on April 22, the IMF warned of a rising US recession threat and a “significant slowdown” in the global economy.
The US administration claims that one reason for imposing the “reciprocal tariffs” is because it feels “ripped off” by China and other trading partners, citing its “large and persistent” trade goods deficits. The truth, however, is that the US remains the biggest beneficiary of global trade. Globalisation has brought big profits to American multinationals, offered American consumers a variety of inexpensive goods and bolstered the international standing of the US dollar.
In the case of China-US trade, while China runs a surplus in goods trade, the United States holds a considerable surplus in services trade. When trade in goods, trade in services and the local sales of domestic companies’ branches in each other’s countries are taken into full account, China and the US have benefited more or less equally from their two-way trade.
These facts have been conveniently ignored by the US. By wielding the tariff stick, the US follows the logic of a selfish bully – the world must pay for “American exceptionalism” and allow the US to maintain its supremacy at the expense of others.




In the face of such blatant economic coercion, China has taken resolute countermeasures, not only to defend its own legitimate interests but also to safeguard the multilateral trading system and international justice.
Over the past few days, there have been chaotic signals coming out of Washington. While continuing maximum pressure, they have said they will substantially reduce tariffs on China. People can see the gimmick here – try to mitigate their self-inflicted losses and influence the capital market.
China’s message to the US administration has been consistent and clear: tariff and trade wars have no winners. China does not look for a fight, but neither are we afraid of one. We will fight if we must.
Our doors remain open if the US wants to talk. But at the moment, there is no negotiation on tariffs happening between China and the US. If the US is serious about a negotiated solution, it should stop all its coercion and blackmailing. Any negotiation must be based on equality, respect and mutual benefit.
How is China’s economy performing against this backdrop? China’s gross domestic product grew by 5.4 per cent year on year in the first quarter of this year. Retail sales of consumer goods grew by 4.6 per cent. Fixed asset investment rose by 4.2 per cent.


Industrial value added of enterprises grew by 6.5 per cent and that for the service sector went up 5.3 per cent. China’s total trade in goods reached 10.3 trillion yuan, with exports up by 6.9 per cent.
All of this shows that the series of measures we have been taking – expanding domestic demand, stabilising foreign trade and foreign investment, accelerating the development of new quality productive forces, and expanding high-standard opening up – are working. China’s economy has strong resilience and internal driving force.
China’s development will continue to generate opportunities for the world through its opening up. China’s overall tariff level has been reduced to 7.3 per cent. On April 24, it was announced jointly by three government agencies that the negative list for market access will be further shortened, from 117 items to 106. We will continue to increase market access and provide better services and protection for foreign investment.
In China, what investors will find is a predictable and consistent macro policy environment, a supersized market of over 1.4 billion people, the most complete industrial system in the world and an increasingly internationalised, market-oriented and law-based business environment. Companies from around the world, including the United Kingdom, are welcome to join in China’s development and achieve mutual benefit. Now is the best time to invest in China.
At this critical juncture, the international community needs to show solidarity and act together against unilateralism and trade bullying. Much is at stake here, not only for the economy of every country, but also for the global trading system.
Appeasement or caving in will simply embolden the bully. Only firm opposition will convince the US to change its current course. On this major issue of principle, it is hoped that the UK, with its long tradition of championing free and open trade, will stay on the right side of history, on the side of multilateralism and international cooperation.


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Only firm opposition from a united international community will convince the US to change its current course of action


Only firm opposition from a united international community will convince the US to change its current course of action.


US-China trade war

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Expresses the views, ideas and conclusions of the author. (Eg. Enough of Crazy Rich Asians, think of crazy poor Hongkongers.)


In the face of trade bullying, appeasement is not an option

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Only firm opposition from a united international community will convince the US to change its current course of action

Only firm opposition from a united international community will convince the US to change its current course of action