The US side claimed on May 6 that the US plans to raise the tariff imposed on $200 billion of Chinese goods from 10 percent to 25 percent on Friday, and $325 billion of additional goods will also be taxed shortly at a rate of 25 percent.
US side complained that China-US trade talks were proceeding “too slowly,” and said the tariffs paid to the US “are partially responsible for US’ great economic results,” but “have had little impact on product cost, mostly borne by China.”
The two countries just concluded the 10th round of trade talks last week and agreed on a new round of talks this week in Washington.
A spokesperson of China’s foreign ministry said Chinese delegation is preparing to travel to the US for consultations.
Beijing’s response indicated that China will focus on the talks rather than engage in public opinion warfare.
The previous 10 rounds of China-US trade talks have brought remarkable progress, but contests become more intense at the end of the race. It remains unknown if US side’s attitude suggests the US intends to give up negotiations or whether it seeks to maximize US interests at the last minute.
What matters most now for China is calm. The Chinese public wants an agreement, but meanwhile is well prepared for other potential outcomes, including a temporary breakdown in talks.
It is certain that the Chinese society’s expectation of a quick deal is not as high as that of American society. Even if talks fail, the impact on China will be controllable.
Washington also desires an agreement, as damage brought about by the trade war is two way. Upgrading and maintaining a long-term trade war is by no means an option for which Washington hopes.
Over the past year or so, the effects of trade wars and negotiations have been different. The pessimistic information related to trade talks is one of the biggest killers for the US and global stock markets, while related optimistic messages are the most effective and positive ones pushing global stock markets to rise. Although both the Democratic Party and the Republican Party advocate a hard-line stance on China, trade wars have topped the US list of biggest disputes.
We maintain Chinese society should strongly support our country’s strategy at this time. Whatever happens, we are together with our country. We should have the courage and endurance to bear the breakdown of negotiations and create a good condition for our government to safeguard our core interests.
Even if the negotiations break down and Washington comprehensively raises tariffs, that does not mean the door to talks is closed.
US’ attitude just reveals that Washington is anxious for an early agreement. At such a time, China needs to keep calm.
China is a big and booming market, not one the US can easily give up. The trade war is a lose-lose process, which is a law of economics. It is our essential strategy to make China’s own affairs as good as possible. China’s economic prospects should and must be in Chinese people’s own hands.