Today, prior to imposing new reciprocal tariffs against U.S., China released a White Paper on China-U.S. Economic and Trade Relations.
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Preface
As the world’s largest developing country, China is also the largest contributor to annual global economic growth. As the largest developed country, the United States boasts the largest economy in the world. The China-US economic and trade relations hold profound significance for both countries and exert a substantial influence on global stability and development.
Over the 46 years since the establishment of diplomatic relations between China and the US, bilateral trade and economic ties have developed steadily. The volume of trade between the two countries has surged from less than US$2.5 billion in 1979 to nearly US$688.3 billion in 2024. The China-US economic and trade cooperation has continued to expand and improve, making significant contribution to the economic and social development, and wellbeing of the peoples of both countries.
However, in recent years, the rise of unilateralism and protectionism in the US has significantly impeded the course of normal economic and trade cooperation between the two countries. Since the beginning of trade friction between China and the US in 2018, the US side has imposed tariffs on Chinese exports worth more than US$500 billion. Furthermore, it has continuously implemented policies aimed at containing and suppressing China. The Chinese side has to take forceful countermeasures to defend its national interests. At the same time, committed to resolving disputes through dialogue and consultation, the Chinese side has engaged in multiple rounds of economic and trade consultations with the US side to stabilize bilateral economic and trade relations.
On January 15, 2020, China and the US signed the Economic and Trade Agreement Between the Government of the People’s Republic of China and the Government of the United States of America (also known as the Phase One Economic and Trade Agreement). Following its entry into force, the Chinese side upheld the spirit of contract and endeavored to overcome multiple adverse factors, including the unexpected impact of the pandemic, subsequent supply chain disruptions, and global economic recession, to ensure implementation of the Agreement. The US side issued several statements affirming the effectiveness of the Chinese side’s efforts. In contrast, the US side has continuously tightened export control, escalated sanctions against Chinese enterprises, and repeatedly violated its obligations under the Agreement.
Recently, the US side issued the America First Trade Policy Memorandum, the America First Investment Policy Memorandum and the Report on the America First Trade Policy Executive Summary, imposed comprehensive additional tariffs on Chinese products, including tariffs citing the fentanyl issue as the pretext, announced “reciprocal tariffs”, levied an additional 50 percent on existing tariffs, and proposed Section 301 investigation restrictions, such as charging port fees, targeting China’s maritime, logistics, and shipbuilding industries. These restrictive measures have escalated the problem, and again reveal the isolationist and coercive nature of US conduct. They are in conflict with the principles of the market economy, run counter to multilateralism, and will have serious repercussions for China-US economic and trade relations. In accordance with the fundamental principles of international law and relevant laws and regulations, the Chinese side has taken necessary countermeasures.
The US imposition of tariffs and other restrictive trade measures on its trading partners has artificially disrupted established global supply and industrial chains, undermined market-oriented free trade rules, severely hindered the economic development of various countries, harmed the wellbeing of both the American people and those of other countries, and negatively impacted economic globalization.
The Chinese side has always maintained that China-US economic and trade relations are mutually beneficial and win-win in nature. As two major countries at different stages of development with distinct economic systems, it is natural for China and the US to have differences and frictions in their economic and trade cooperation. It is crucial to respect each other’s core interests and major concerns, and find proper solutions to resolve the issues through dialogue and consultation.
The Chinese government is issuing this white paper to clarify the facts about China-US economic and trade relations, and elaborate the position of the Chinese side on relevant issues.
Download the document:V. Unilateralism and Protectionism Undermine China-US Economic and Trade Relations
As a key builder and participant of the international economic order and multilateral trading regime after World War II, the US should take the lead in observing multilateral trade rules and properly handle trade friction with other WTO members through the dispute settlement mechanism within the WTO framework. However, in recent years, the US has resorted to unilateralism and economic hegemony, adopted approaches of “small yard, high fence” and decoupling and severing supply chains, and provoked international trade friction around the world. This has not only undermined the interests of China and other WTO members, but also jeopardized the international reputation of the US itself. And above all, the US has shaken the foundations of the global multilateral trading regime, which will ultimately damage the long-term interests of the US.
1. Rescinding China’s Permanent Normal Trade Relations (PNTR) Status Undermines the Foundation of China-US Economic and Trade Relations
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2. US Generalization of the Concept of National Security Hinders China-US Economic and Trade Cooperation
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3. US Abuse of Export Controls Destabilizes Global Supply Chains
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4. Section 301 Tariff Measures Are a Prime Example of Unilateralism
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5. The US Section 232 Investigations Contravene Multilateral Economic and Trade Rules
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6. US Abuse of Trade Remedy Measures Increases Uncertainty in Trade
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7. US Use of Fentanyl as a Pretext to Impose Restrictive Economic and Trade Measures on China Is Not Helping to Solve Problems
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8. The “Reciprocal Tariffs” Imposed by the US Will Damage Its Own and Others’ Interests
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