China releases white paper on US trade relations

The State Council Information Office of China yesterday released a comprehensive white paper titled “China’s Position on Certain Issues in China-US Economic and Trade Relations,” outlining its official position on ongoing trade disputes with Washington.

The white paper addresses the nature of economic relations between the two countries, the implementation of the Phase One Trade Agreement, compliance with World Trade Organization (WTO) rules, and unilateral policies of the US.

In the introduction, Beijing stated that China and the US are the world’s largest developing and developed countries, respectively, emphasizing that economic and trade relations between the two are of great importance for both bilateral and global stability and development.

It noted that since the establishment of diplomatic relations in 1979, bilateral trade volume has increased from $2.5 billion to approximately $688.3 billion in 2024.

The white paper stated that the foundation of China-US economic and trade relations lies in the understanding of “mutual benefit and win-win.”

It was noted that the two countries are important trading partners for each other, with rapidly increasing trade in goods and services.

China is the US’s largest goods export market and second-largest source of imports; the US is China’s third-largest export market and second-largest source of imports.

Beijing argued that it does not pursue a trade surplus, and that the trade balance is a result of structural problems in the US economy, the comparative advantages of the two countries, and the international division of labor.

It was reported that when local sales through trade in goods, trade in services, and investments are considered together, the economic benefits obtained by the two countries are roughly balanced.

Additionally, it was stated that China is taking active steps to increase imports through platforms such as the China International Import Expo (CIIE).

The white paper gave extensive coverage to the Phase One Trade Agreement signed on January 15, 2020.

It was argued that the Chinese side has meticulously fulfilled its obligations under the agreement, despite challenges such as the COVID-19 pandemic, supply chain disruptions, and global economic recession.

In this context, it was stated that intellectual property protection has been strengthened, market access has been increased in the agricultural and food products and financial services sectors, and forced technology transfer has been prohibited.

In contrast, it was pointed out that the US side has not fulfilled its obligations under the agreement.

According to the white paper, Washington, contrary to the spirit of the agreement, tightened export controls, increased sanctions against Chinese companies, and imposed investment restrictions.

In particular, regarding technology transfer, it was argued that the US, as in the case of TikTok, is forcing companies to sell and preventing investment cooperation under the pretext of “national security.”

In the field of agriculture, it was stated that the US has not recognized China’s avian influenza-free zone status and has not responded to requests for cooperation on pesticides.

It was also claimed that the US has engaged in restrictive and discriminatory practices in financial services and exchange rate issues.

In addition, Beijing emphasized that since joining the WTO in 2001, it has adhered to the principle of free trade and has strictly complied with WTO rules.

It was stated that in this process, more than 2,300 central laws, regulations, and rules, and more than 190,000 local regulations have been reviewed and revised.

It was stated that customs duty rates have been reduced in line with WTO commitments and have even been further reduced unilaterally in recent years.

It was argued that subsidies are provided within the framework of WTO rules and within reasonable limits, and that relevant notifications are made in a timely manner.

The white paper stated that accusations that China creates “overcapacity” and disrupts international markets with “non-market economic behaviors” such as subsidies are “irrational and untrue.”

It was emphasized that such claims are trade protectionism and will harm global supply chains.

On the other hand, it was noted that China is constantly improving its business environment, expanding market access for foreign investments, and treating all domestic and foreign businesses equally.

A significant part of the white paper was devoted to criticizing the US’s unilateral and protectionist policies. It was stated that Washington arbitrarily expanded the concept of “national security,” used export controls as a political weapon (especially in the fields of semiconductors and artificial intelligence), and applied Section 301 and Section 232 customs duties that clearly violate WTO rules.

It was pointed out that the WTO panel found Section 301 tariffs to be against the rules. It was noted that these tariffs did not solve the US trade deficit, but rather increased costs for US importers and consumers.

Similarly, it was stated that Section 232 tariffs applied to steel and aluminum products were used not for “national security” reasons, but to put pressure on other countries in negotiations.

It was warned that US attempts to remove China’s Permanent Normal Trade Relations (PNTR) status violate WTO rules and would seriously damage bilateral relations.

It was stated that using the fentanyl issue as an excuse to increase customs duties is baseless and will not solve the problem.

Finally, it was pointed out that the “reciprocal customs duties” implemented by the US will harm both the US economy and global trade.

In the conclusion of the white paper, it was reiterated that China and the US are the world’s two largest economies and that cooperation between them is critical for global peace and development.

It was emphasized that it is natural for the two countries to have differences, but these should be resolved through equal dialogue and mutually beneficial cooperation rather than conflict.

Beijing, using the expressions “There are no winners in trade wars, and protectionism is a dead end,” called on the US side to move in the same direction as China, and to act in accordance with the principles of mutual respect, peaceful coexistence, and win-win cooperation.

It was stated that the two countries can address their concerns through dialogue and jointly promote the healthy, stable, and sustainable development of bilateral economic and trade relations.