Xinhua commentary: China’s counter-measures

Home > Finance

Xinhua commentary: China’s counter-measures

2018-08-04 20:25:01 31 ℃

The US has recently announced that it plans to increase the tariff rate of 200 billion US dollars to China's exports to the United States from 10% to 25%. The Chinese side announced on the evening of the 3rd that it will legally follow the fourth gear of about 60 billion US dollars of products imported from the United States. Different tax rates are subject to tariffs, and the specific implementation date will be subject to US action. China's differentiated tax rate counter-measures are rational and restrained.

In fact, as early as July 11, the United States threw out a list of 10% tariffs on my $200 million product, considering the possible impact of taxation on businesses and people in both countries. We have not easily published a counter-inventory list. However, the United States has always threatened blackmail and escalated the situation. Recently, it has increased the tax rate of 200 billion US dollars of products to 25%. In the face of such acts that harm the interests of our country and the people, we have to take action and resolutely defend legitimately according to law. .

Someone may question why the amount of tax on products of both parties is different? We know that this is not a digital game, and every change in numbers can involve the interests of thousands of businesses and consumers. The Trump administration can ignore the consequences of taxation, disregard the opposition in the United States, sacrifice the interests of the majority for the current vote, and arbitrarily raise the tax rate, but we cannot "play with the United States."

In the face of the irrationality of the other side, the Chinese side has extensively listened to opinions and carefully assessed the impact. The differential tax rate for the 5,207 tax items originating in the United States is based on the substitution of different products imported from the United States. The degree is divided to minimize the impact on the lives of Chinese companies and people and to ensure the operation of the global industrial chain. The differentiated tax rate is a full expression of the people-centered development thinking, and also reflects the rational restraint of China and the unification of counter-flexibility and precision.

Of course, this is just a tax list, and when it will be implemented will depend on the performance of the US. The Chinese side is not willing to fight, but there is no shortage of bullets, and they are ready to use the combination of “quantity and quality”.

If the trade war is a protracted war, then the two sides should not fight who is more fierce, but who will last longer. As many international people have said, the strong growth of the US economy is difficult to sustain, and the factors such as the trade war and the weakening of the tax cuts will damage the economy's "near happiness" and now "far worry." Moreover, in the United States, there are more and more dissatisfaction with the "insurance of tariffs". At the end of July, the United States held a tariff hearing on China’s $16 billion loss of US products. Only 6 of the 82 speakers agreed. It is only about 7%. In contrast, China's economic stability is enhanced, economic operations are more coordinated, coupled with the institutional advantages of having a huge domestic market, concentrating power to do big things, an unwavering open-minded strategy, and a spiritual support to overcome difficulties. This has earned us time, space and confidence in dealing with external shocks.

The door to China’s negotiations has always been open, and it has never been reduced to the sincerity of efforts to resolve differences. However, as China has always stressed, the premise of consultation is mutual respect, equality and mutual benefit. I hope that the US can return to rational calm, show sincerity, and stop trying to solve problems with threats and blackmail.

Editor: Roth Young