Chinese professor spoke to Harici: Trade War Speeds Up China’s Tech and Science Rise

Professor Xie Chao, the Secretary of the Party Committee of Shanghai Lixin University of Accounting and Finance spoke to Harici on the US-China relations and trade war agenda.

Professor Xie is also the Director and Chief Expert of China Knowledge System Construction Research Center of Shanghai Social Science Innovation Research Base. He is also the Vice Chair of the Scientific Socialism Institute of China and the chairman of the Scientific Socialism Institute of Shanghai. He used to be the vice dean of the Graduate School, Head of the CPC Committee Students Affairs Department, Head of the Publicity Office, the Dean, Professor, and PhD supervisor of the School of Marxism Studies, East China Normal University, also the vice chairman of he Shanghai Federation of Social Science Associations.

He has long been engaged in research on Marxism and the Development of Contemporary China, the knowledge system of Chinese philosophy and social sciences, and the theory and practice of world socialism. In 2019, he presided over “Research on Issues Related to China’s Knowledge System”, the major project funded by the National Social Science Fund. He presided over the 2021 Shanghai Philosophy and Social Sciences Planning Project “Research on the Great Contribution of Chinese Modernization to Human Civilization and the Deep Impact of World History”. He presided over the 2023 key project of the National Social Science Fund “Research on the Construction of Independent Knowledge System of Philosophy and Social Sciences with Chinese Characteristics”. He has published more than 10 books and more than 40 scientific research papers in important newspapers and journals such as Guangming Daily, China’s Higher Education, and Exploration and Free Views.

Professor Xie Chao answered our questions about Donald Trump’s tariff policy, China’s countermeasures, and the competition and relations between the two countries.

It appears that a truce has been reached in the US-China trade war, but both the US’s technology restrictions and China’s restrictions on rare earth elements remain in place. Where do you think this process will lead? Is a permanent truce possible, or will the competition continue in a confrontational manner?

Basic economic principles tell us that exchange creates value and trade drives development. As two of the most influential nations on the global stage, it is inevitable—and normal—for China and the United States to experience differences and frictions in their cooperation. The key lies in finding appropriate ways to resolve these issues. For both China and the U.S., cooperation benefits both sides, while confrontation harms both. The essence of economic cooperation and trade should be mutual benefit and win-win outcomes. Recently, on the premise that the U.S. has begun to adjust its erroneous trade policies, China and the United States have gradually reached a preliminary consensus, and bilateral trade is returning to a normal track. Not long ago, the United States eased a series of restrictive measures on China, involving products in key areas such as EDA software, ethane, and aircraft engines. China has also taken relevant steps to promote the development of China-U.S. trade relations. For the global economy, the normalization of China-U.S. trade has brought a collective “sigh of relief” worldwide. The China-U.S. trade frictions not only harm the two countries involved, but also have spillover effects on the entire world.

China-U.S. trade negotiations are currently moving in a positive direction, but it is still too early to be overly optimistic. There are significant differences between the two countries in terms of history and culture, stark contrasts in social systems and paths of development, as well as divergent strategic interests and national goals. Therefore, achieving stable and orderly dialogue and cooperation between China and the United States remains a long and challenging journey. As General Secretary Xi Jinping once said, “The Pacific Ocean is vast enough to accommodate both China and the United States.” Ancient Chinese wisdom also tells us, “All things can grow together without harming one another; all paths may run parallel without contradicting one another.” One of the hallmarks of Chinese cultural wisdom is the spirit of inclusiveness. China has always upheld the principle that all sovereign states, regardless of their size or strength, are equal. Equality is the foundation of mutual respect. China respects the sovereignty and development path of the United States and has never sought to change it. For the United States, embracing the current trend toward a multipolar world, respecting China’s core concerns and the choices of its 1.4 billion people, abandoning Cold War mentality, respecting differences, and treating others as equals are the right approaches to ensuring long-term cooperation and engagement between China and the United States.

For example, Beijing reacted to the trade agreement between the US and Vietnam, saying that it targeted China’s interests. It also reacted similarly to the agreement between the UK and the US. Is the US trying to encircle China through its trading partners?

In recent years, the United States has repeatedly sought to contain and suppress China in relevant fields, undermining normal economic and trade relations as well as cooperation on industrial and supply chains between the two countries, and attempting to force China to accept unfair, U.S.-dominated trade terms. It is widely known that during the first term of President Donald Trump, the U.S. government initiated economic and trade frictions with China. The Biden administration has continued policies such as imposing tariffs through approaches like building “small yards and high fences” and promoting “friend-shoring.” It has even aggressively pursued a strategy of “decoupling and breaking chains” from China. Under the pretext of national security, it has made every effort to suppress Chinese technology companies—most notably Huawei—in the field of science and technology. Shortly after the beginning of his second term, President Trump irrationally imposed high tariffs on Chinese goods. The United States even mobilized state power to introduce the so-called CHIPS and Science Act, cobbled together so-called alliances like the Semiconductor Industry Coalition and the Chip 4 Alliance, and issued executive orders on outbound investment screening. It is fair to say that the efforts to contain and suppress China have continued to escalate in intensity, with every possible means being used.

Since 2024, certain U.S. politicians have continued to hype up the so-called “Chinese overcapacity” narrative in the new energy sector, making unwarranted accusations about China’s industrial policies and labeling normal industrial development and exchanges as national security concerns in order to impose restrictions and suppression. As always, the United States has resorted to its usual carrot-and-stick approach, rallying its allies in an attempt to contain and block the development of China’s emerging industries. These actions have cast a heavy shadow over the normal development of China-U.S. relations and have seriously undermined China’s security and development interests. In particular, the imposition of restrictive and punitive measures against Chinese nationals in the U.S.—including ethnic Chinese, international students, and researchers—has caused significant negative repercussions and growing resentment toward U.S. policy. Nevertheless, while taking reciprocal countermeasures, China has remained committed to the three principles of mutual respect, peaceful coexistence, and win-win cooperation, and continues to make unremitting efforts—rational, firm, and measured—to promote the sound development of China-U.S. relations.

Do you think US-China relations are turning into a “cold war” type structure in the short or medium term, or are areas of cooperation still possible?

China and the United States not only have room for cooperation in the short term, but also enjoy significant potential for long-term collaboration. As the world’s largest developing country, China boasts an ultra-large domestic market and is also one of the few countries in the world with a comprehensive and complete industrial system. China and the United States are the world’s two largest economies, accounting for over one-third of global GDP, nearly one-fifth of global bilateral trade, and close to one-quarter of the world’s population. It is hard to imagine what the global economy would look like without economic and trade exchanges between China and the United States. The pivotal roles of China and the United States on the international stage have a direct impact on global peace and stability. Whether in the realms of politics, economics, culture, society, ecology, climate, or energy, the international community widely expects both countries to join hands and work together with the rest of the world to address and resolve the common challenges facing humanity. As General Secretary Xi Jinping has stated, both history and reality have proven that it is not feasible for two major countries like China and the United States to avoid engagement; attempting to change one another is unrealistic, and the consequences of conflict and confrontation are unbearable for both sides. China–U.S. relations are not a question of whether to get them right, but rather how to get them right—an answer that must be addressed. The key to solving this must-answer question lies in adhering to the overarching principles of mutual respect, peaceful coexistence, and win-win cooperation. As long as this general direction remains on course, China and the United States can maintain long-term cooperation and jointly bring peace and stability to the international community.

What is the perception of the trade war within China? Does the public view this process as a threat or as an opportunity for national recovery?

China has never intended to engage in a trade war with the United States. China has consistently followed the principle of mutual benefit and win-win cooperation in its economic and trade relations with the U.S. Since the beginning of reform and opening-up, economic cooperation and trade has served as both the “ballast” and the “propeller” of China–U.S. relations. The depth and breadth of this cooperation have not only brought growth and welfare to the economic and social development of both countries, but also made significant contributions to global prosperity and stability. In recent years, however, the United States—guided by an extremely insecure “new Cold War” mentality—has continued to contain and suppress China in various industrial sectors. This has not only disrupted the long-standing normal economic and trade exchanges and industrial and supply chain cooperation between China and the U.S., but has also contributed to the downward pressure on the global economy. Historical experience shows that cooperation benefits both sides, while confrontation harms both. Win-win cooperation should be the main theme of China–U.S. relations—not only now, but also as a shared goal for both parties going forward. It is fair to say that whether we look at the present or take a long-term view toward the future, the space for cooperation between China and the United States—based on deep integration—is vast and boundless.

From an economic interest perspective, in 2024, China–U.S. trade reached nearly USD 700 billion, and more than 70,000 U.S. companies operating in China generated over USD 50 billion in profits. Expanding employment is a key commitment of the Trump administration to its voters, and U.S. exports to China have provided at least 930,000 jobs in the United States. For the American public, high-quality and affordable Chinese products are the go-to choice for consumers. According to statistics, in 2024, about 60% of McDonald’s newly opened global outlets were in China. In 2023, nearly half of Tesla’s electric vehicles were produced at its Shanghai Gigafactory. The number of Starbucks stores in Shanghai has already exceeded 1,000. These figures clearly demonstrate the enormous potential for mutually beneficial cooperation between China and the United States.

How do you think the trade war aligns with China’s goal of building a “more independent, more resilient” economy? How has this trade war affected China’s economic transformation policies? For example, has it led to revisions in the “Made in China 2025” strategy?

Independence and self-reliance are fine traditions of the Chinese nation. Focusing on our own development has always been the way of life upheld by the Chinese people. Whether or not there is a trade war, the Chinese people have never ceased their efforts to become more self-reliant and self-strengthening. Since the 3rd Plenary Session of the 11th CPC Central Committee in 1978, the country has launched a sweeping wave of reform and opening-up, with the doors to reform and opening-up ever wider. The Chinese people have progressed from standing up to becoming prosperous and strong. Chinese modernization is advancing steadily, with emerging industries represented by new quality productive forces occupying new frontiers in technological development and innovation. In particular, the 3rd Plenary Session of the 20th CPC Central Committee proposed comprehensive reform measures, marking a shift in the nation’s reform process from localized explorations and initial breakthroughs to systematic integration and comprehensive and in-depth advancement. The breadth of China’s reforms is unprecedented, with over 2,000 reform initiatives spanning all areas—including the economy, politics, culture, society, ecological civilization, Party building, national defense, and the military. The depth of the reforms targets critical areas, aiming to tackle major institutional and structural challenges and resolve deep-seated contradictions and issues.

As a result, China’s national governance system and governance capacity are steadily moving toward modernization. China has historically eradicated absolute poverty and established the world’s largest education system, social security system, and healthcare system, leading to comprehensive improvements in people’s livelihoods. The country is advancing toward a high level of reform and opening-up, having established 22 pilot free trade zones. Its network of visa-free partnerships continues to expand, and China has become a major trading partner for over 140 countries and regions, contributing more than 30% annually to global economic growth. Therefore, with or without a trade war, China will continue to advance toward its established goal—that is, the great rejuvenation of the Chinese nation. Of course, if one must argue that the so-called trade war has had any impact on China’s economic transformation policies, it would only be that it has further accelerated the development and deployment of China’s emerging science and technology sectors.

During this period, when other countries are uncomfortable with the US’s aggressive policies, China is presenting itself as a more moderate, positive alternative. How do countries in Europe and Asia view this? Would you say they are moving closer to China? Or are they still reluctant to take a stand against the US?

Overall, most countries outside the United States are dissatisfied with and resentful of the so-called “America First” aggressive and hardline policies. The series of hardline measures adopted by the U.S. government further highlights its hegemonic mindset of unilateralism and self-interest. As a result, profound adjustments and changes are expected in areas such as economic globalization, the international order, geopolitical security dynamics, and global ideological trends. The Trump administration, adhering to the “America First” principle, aggressively promoted a global “redistribution” of benefits in industries, employment, and trade, aiming to ensure that the United States would no longer be “taken advantage of.” Clearly, the multilateral trade system centered on the World Trade Organization (WTO) has come under serious strain. Moreover, the Trump administration’s acts of “withdrawing from agreements and international organizations”—such as pulling out of the World Health Organization and the Paris Agreement—have inevitably inflicted considerable damage on the international system centered on the United Nations and the fundamental norms of international relations based on the purposes and principles of the UN Charter. Amid the profound changes unseen in a century, the already volatile global political and economic landscape has been further destabilized by a series of U.S. policies, significantly increasing uncertainty.

In contrast, China does not follow the erroneous path of “a strong country must seek hegemony.” Instead, it adheres to a policy of no conflict, no confrontation, good-neighborly relations, mutual benefit and win-win cooperation, and peaceful coexistence. With a stance of sincere cooperation, friendly consultation, and calm confidence, China stands firmly on the world stage and has been welcomed and praised by the international community. The proposal and implementation of the concept of a community with a shared future for mankind, over a decade of practice and development under the Belt and Road Initiative, and the launch and advancement of the Global Development Initiative, the Global Security Initiative, and the Global Civilization Initiative have all contributed Chinese wisdom and solutions to global governance. China continues to pursue high-quality development and advance Chinese modernization, with the goal of enabling its people to enjoy ever better lives and making greater contributions to global sustainable development.

The international community does not wish to see conflict or confrontation between China and the United States, nor does it want to be forced to take sides. What the world hopes for is peaceful coexistence and friendly cooperation between the two countries. As mentioned earlier, whether now or in the future, the space for cooperation between China and the U.S. is vast. As two major powers playing pivotal roles on the global stage, China and the United States bear undeniable international responsibilities. Competition and confrontation should not define the tone of China-U.S. relations; win-win cooperation should be the main theme. Only by turning competition into cooperation and replacing zero-sum games with mutually beneficial outcomes can both countries truly demonstrate a high level of responsibility to themselves and to the international community.