Skip to main content

'Do They Think This Is 1840?' Chinese Media Criticizes US For Demanding Trade Deficit Reduction

President Donald J. Trump and President Xi Jinping on July 8, 2017 (Official White House Photo by Shealah Craighead, via Wikimedia Commons)

On May 4 the Trump administration demanded that the Chinese government implement measures to cut its $200 trade surplus with the United States, lower import tariffs and reduce advanced technology subsidies.

A US delegation headed by Treasury Secretary Steven Mnuchin arrived in Beijing on May 3 to hold trade talks with Chinese Vice Premier Liu He.

Chinese media published a document allegedly submitted by the US delegation to the Chinese side during the negotiations. "At present, the United States-China trade relationship is significantly imbalanced," the paper states. "United States investment and the sale of services into China remain severely constrained. China's industrial policies now targeting U.S. technologies and intellectual property pose significant economic and security concerns to the United States. There is an immediate need for the United States and China to reduce the U.S. trade deficit with China by ensuring that China's market is open to United States traders and investors on a fair and non-discriminatory basis."

The paper states that China needs to "eliminate improper tariff and non-tariff barriers", to address "policies and practices related to technology transfer and intellectual property", to "treat United States service providers in China on terms equal to those provided to Chinese service providers  the United States," and to agree not to "target United States farmers and agricultural products."

The US delegation allegedly demanded the reduction of the trade deficit by at least $200 billion by the end of 2020.

Section 7 of the document, which deals with the implementation of the US demands, states that China and the United States "will meet quarterly to review progress in meeting agreed targets and reforms." 

"In the event that the United States considers that China fails to comply with any of China's commitments in this Framework, including deficit targets, China acknowledges the likelihood that the United States will impose additional tariffs or other import restrictions on Chinese products," the paper warns. 

Chinese state media outlets have lambasted the Trump administration's demands, comparing them to the "unequal treaties" forced upon China by Western colonial powers and Japan in the 19th century. They accused Washington of treating China "as if we lived in 1840," a reference to the rhetoric of national humiliation frequently invoked by Beijing.   

The Chinese government has often been criticized for pursuing unfair trade practices providing Chinese companies with protection and advantages in the domestic market, while subsidies help exports of Chinese products abroad.

Comments

Popular posts from this blog

Rumours About Chinese Actress Fan Bingbing's Arrest Spread Online

Rumours about the arrest of Chinese model and actress Fan Bingbing on charges of tax evasion have spread on Chinese media.
As Apple Daily reports, celebrity Fan Bingbing and her younger brother Fan Chengcheng have allegedly been detained for taking part in a tax evasion scheme alongside her manager, Mu Xiaoguang.
Mu has also allegedly been charged with destroying incriminating evidence.

On May 28 TV anchor Cui Yongyuan posted on Weibo a contract that showed Fan Bingbing being paid $1.56 million (RMB10 million) for four days’ work on director Feng Xiaogang's film “Cell Phone 2.” 

Later Cui released another contract worth $7.8 million (RMB50 million) for the same work. He alleged that Fan had declared to tax authorities only the first contract, thus avoiding to pay taxes on the second, larger amount. 

Double-contracts for the purpose of tax evasion are known in China as "yin-yang contracts". 

Although the Chinese government censored Cui's posts, in early June China's t…

Why Liberals Should Embrace Fair Trade, Debate Role Of Tariffs

On the latest episode of Last Week Tonight, comedian John Oliver made fun of Donald Trump's tariffs and mocked him for not understanding how free trade works.  
Oliver noted that tariffs are paid by importers and typically passed along to US consumers, leading to higher prices. Tariffs could cost the US hundreds of thousands of jobs, Oliver argued. 
Trade deficits "aren't actually always bad, and many economists believe, for very complex reasons involving savings rates and the dollar's special status as the world's reserve currency, that America's trade balance might be more or less where it should be," he said.
Oliver argued that "the overwhelming consensus among economists is that trade between countries generally speaking can create jobs, lower costs, and be a net benefit to both nations." 
But is John Oliver right?

We shall argue that although Trump's tariffs lack a clear strategy and are therefore not the right path for the US, tariffs…

Chinese Dissidents Found Shanghai Independence Party, Oppose Communist Rule

A group of Chinese dissidents has founded a new party that challenges the dictatorship of the Chinese Communist Party (CCP) and advocates Shanghai independence. 
Since Xi Jinping took office in 2012, the Chinese government has tightened its grip on civil society and the media, cracking down on free speech, hardening its stance towards Taiwan and launching an all-out assault on Uighur society. However, the Party's increasingly oppressive policies are causing a backlash. 
In the United States a group of Chinese dissidents have formed the Shanghai National Party (上海民族黨), also called Humindang (滬民黨), from the character Hu (滬), the short name for Shanghai. 
「上海民族黨」在紐約成立 反共並要求上海獨立 https://t.co/KQEzGIEDqgpic.twitter.com/IHOwIeuUKe — RFI 華語 - 法國國際廣播電台 (@RFI_TradCn) August 12, 2018

The party, registered on July 18 in New York, United States, promotes the overthrow of the Communist regime and the independence of Shanghai. The slogan of the party is: "Leave China, return to Europe, compreh…