(Bandar Seri Begawan, 26th) In recent days, the United States has unilaterally launched a tariff war against almost all trade partners and has recently been pressuring various parties to initiate so-called "reciprocal tariff" negotiations. Media reports indicate that the U.S. is also using tariff measures to coerce other countries into restricting economic and trade cooperation with China, fully exposing the U.S. side's irrational extent of weaponizing and instrumentalizing tariffs. The U.S. actions seriously infringe upon the legitimate rights of countries, severely undermine the rule-based multilateral trading system, and severely impact the stability of the global economic order, drawing widespread opposition from the international community.
This is an article by China's Ambassador to Brunei, Xiao Jianguo, regarding U.S. tariff measures. The actions of the United States not only violate economic principles but also harm others while harming itself, and cannot hinder China's economic development. In-depth analysis reveals three key truths:
Truth One: The U.S. "loss argument" is fundamentally untenable; the trade deficit is due to its own issues
The U.S. has long complained that a trade deficit means "being taken advantage of," but this claim is completely unconvincing. Firstly, the hegemony of the dollar dictates that the U.S. must maintain a trade deficit, as only by importing a large number of goods can it export dollar liquidity globally, thereby consolidating its financial hegemony. Secondly, the U.S. economic model itself leads to a reliance on importing consumer goods, and high-quality goods from China and other countries precisely meet its market demand. Furthermore, the U.S. has long strictly controlled the export of high-tech products such as semiconductors and aerospace, excessively imposing artificial restrictions on what could otherwise be balanced international trade.
Even more ironically, the U.S. hypes up merchandise trade deficits while avoiding discussions on service trade surpluses. Recently, WTO Director-General Ngozi Okonjo-Iweala pointed out in a paper that U.S. service exports exceeded $1 trillion in 2023, accounting for 13% of the total global service trade; in 2024, the U.S. service trade surplus will exceed $300 billion. In areas such as finance, intellectual property, and education, the U.S. has profited globally for a long time. For example, Qualcomm alone collects billions of dollars in patent fees annually from China.
The so-called "American loss" is just political rhetoric, not economic reality. The U.S.'s "selective blindness" aims to use its market bargaining power as a bargaining chip to force other countries to accept its unilaterally set trade conditions, essentially pursuing "America First" policies by using tariff measures to overturn the existing international economic and trade order, sacrificing other countries' legitimate interests to serve U.S. hegemonic interests.
Truth Two: U.S. tariff policies harm others and itself, undermining global economic stability
The U.S. attempts to maintain its hegemony at the expense of other countries' interests, which will ultimately make its own enterprises and consumers pay the price. For the U.S. itself, high tariffs will drive inflation to return, increase business operating costs, and severely hit economic growth and job expansion. Recently, thousands, including two Nobel laureates and dozens of renowned economists, signed an "anti-tariff declaration," criticizing U.S. tariff policies as a misunderstanding of the economic conditions faced by ordinary Americans and possibly triggering a "self-inflicted" economic recession. Fed Chairman Jerome Powell recently warned that tariffs are highly likely to cause at least short-term inflation to rise, and the impact of inflation may be more lasting. Several think tanks predict that the probability of a U.S. economic recession exceeds 60%, GDP growth this year will decline by 1.1%, exports may fall by nearly 20%, resulting in about 2 million unemployed people, and each household's income loss will exceed $5,000.
On the other hand, the U.S. "tariff machete" exacerbates the already frail global trade, poses risks of supply chain disruptions, undermines the foundation of global cooperation, and presents severe challenges to global economic growth prospects. High tariff barriers will also strip countries, especially those in the Global South, of their development rights. WTO analysis indicates that U.S. tariff policies could lead to an overall contraction of about 1% in global merchandise trade volumes this year, further exacerbating the global wealth gap, with less developed countries suffering greater impacts, severely hindering the achievement of the United Nations' 2030 Sustainable Development Goals. The unilateral actions of the U.S. have damaged the multilateral trading system and the authority of the World Trade Organization, affecting not only global trade flows and volumes but also causing shocks to the financial market, with its uncertainties seriously disrupting the world economy.
Truth Three: China's economic resilience is strong, tariffs cannot hinder its development
The U.S. attempts to use tariffs as a "bargaining" chip, yet tariffs on some Chinese exports to the U.S. under various names have accumulated to 245%, but this is destined to be futile. Since the U.S. initiated the trade war against China in 2018, China has maintained development progress, demonstrating resilience that "gets stronger under pressure." The proportion of China's exports to the U.S. has decreased from 19.2% in 2018 to 14.7% in 2024, continuously reducing its dependency on the U.S. Meanwhile, China adheres to "walking on two legs," steadily advancing the integration of domestic and foreign trade, nurturing and expanding the domestic demand market, promoting the integration of technological and industrial innovation, and continuously releasing the potential of the domestic market and service consumption. In 2024, approximately 85% of the hundreds of thousands of Chinese enterprises with export performance also engage in domestic sales, with domestic sales accounting for nearly 75% of total sales.
No matter how the international landscape changes, China's door to opening up will only open wider. In 2024, China maintained its contribution rate to world economic growth at around 30%, with GDP in the first quarter growing by 5.4% year-on-year, showing favorable trends, continuing to serve as an important engine for the world economy. Recently, the 137th China Import and Export Fair opened its doors to guests, with the number of participating export exhibition enterprises exceeding 30,000 for the first time, and the stability of overseas buyers maintained in both quantity and quality, witnessing the vitality and resilience of global free trade.
China will continue to promote high-level opening-up, implement high-level trade and investment liberalization and facilitation policies, create a first-class business environment characterized by marketization, rule of law, and internationalization, and work hand in hand with countries on the road of mutually beneficial cooperation and shared prosperity. During a recent visit to neighboring countries, President Xi Jinping emphasized that China is willing to work with regional countries to sign the upgraded protocol of the China-ASEAN Free Trade Area as soon as possible, to resist "decoupling and breaking chains," "small yards with high walls," and excessive tariffs with open, inclusive, and united cooperation, and to respond to the "jungle law" of the strong feeding on the weak with the Asian values of peace, cooperation, openness, and inclusion, and to address the world's instability and uncertainty with Asia's stability and certainty.
Appeasement cannot bring peace, nor can compromise necessarily earn respect. Once international trade reverts to the "jungle law" where the strong prey on the weak, all countries will become victims. China and Brunei are both builders, beneficiaries, and defenders of economic globalization and trade liberalization. We must stand on the side of fairness, justice, and historical correctness, promote all countries to jointly safeguard the United Nations-centered international system, uphold the WTO-centered multilateral trading system, jointly defend international fairness and justice, reject making deals at the expense of other countries' interests, and continuously promote inclusive and inclusive economic globalization.
This is an article by China's Ambassador to Brunei, Xiao Jianguo, regarding U.S. tariff measures. The actions of the United States not only violate economic principles but also harm others while harming itself, and cannot hinder China's economic development. In-depth analysis reveals three key truths:
Truth One: The U.S. "loss argument" is fundamentally untenable; the trade deficit is due to its own issues
The U.S. has long complained that a trade deficit means "being taken advantage of," but this claim is completely unconvincing. Firstly, the hegemony of the dollar dictates that the U.S. must maintain a trade deficit, as only by importing a large number of goods can it export dollar liquidity globally, thereby consolidating its financial hegemony. Secondly, the U.S. economic model itself leads to a reliance on importing consumer goods, and high-quality goods from China and other countries precisely meet its market demand. Furthermore, the U.S. has long strictly controlled the export of high-tech products such as semiconductors and aerospace, excessively imposing artificial restrictions on what could otherwise be balanced international trade.
Even more ironically, the U.S. hypes up merchandise trade deficits while avoiding discussions on service trade surpluses. Recently, WTO Director-General Ngozi Okonjo-Iweala pointed out in a paper that U.S. service exports exceeded $1 trillion in 2023, accounting for 13% of the total global service trade; in 2024, the U.S. service trade surplus will exceed $300 billion. In areas such as finance, intellectual property, and education, the U.S. has profited globally for a long time. For example, Qualcomm alone collects billions of dollars in patent fees annually from China.
The so-called "American loss" is just political rhetoric, not economic reality. The U.S.'s "selective blindness" aims to use its market bargaining power as a bargaining chip to force other countries to accept its unilaterally set trade conditions, essentially pursuing "America First" policies by using tariff measures to overturn the existing international economic and trade order, sacrificing other countries' legitimate interests to serve U.S. hegemonic interests.
Truth Two: U.S. tariff policies harm others and itself, undermining global economic stability
The U.S. attempts to maintain its hegemony at the expense of other countries' interests, which will ultimately make its own enterprises and consumers pay the price. For the U.S. itself, high tariffs will drive inflation to return, increase business operating costs, and severely hit economic growth and job expansion. Recently, thousands, including two Nobel laureates and dozens of renowned economists, signed an "anti-tariff declaration," criticizing U.S. tariff policies as a misunderstanding of the economic conditions faced by ordinary Americans and possibly triggering a "self-inflicted" economic recession. Fed Chairman Jerome Powell recently warned that tariffs are highly likely to cause at least short-term inflation to rise, and the impact of inflation may be more lasting. Several think tanks predict that the probability of a U.S. economic recession exceeds 60%, GDP growth this year will decline by 1.1%, exports may fall by nearly 20%, resulting in about 2 million unemployed people, and each household's income loss will exceed $5,000.
On the other hand, the U.S. "tariff machete" exacerbates the already frail global trade, poses risks of supply chain disruptions, undermines the foundation of global cooperation, and presents severe challenges to global economic growth prospects. High tariff barriers will also strip countries, especially those in the Global South, of their development rights. WTO analysis indicates that U.S. tariff policies could lead to an overall contraction of about 1% in global merchandise trade volumes this year, further exacerbating the global wealth gap, with less developed countries suffering greater impacts, severely hindering the achievement of the United Nations' 2030 Sustainable Development Goals. The unilateral actions of the U.S. have damaged the multilateral trading system and the authority of the World Trade Organization, affecting not only global trade flows and volumes but also causing shocks to the financial market, with its uncertainties seriously disrupting the world economy.
Truth Three: China's economic resilience is strong, tariffs cannot hinder its development
The U.S. attempts to use tariffs as a "bargaining" chip, yet tariffs on some Chinese exports to the U.S. under various names have accumulated to 245%, but this is destined to be futile. Since the U.S. initiated the trade war against China in 2018, China has maintained development progress, demonstrating resilience that "gets stronger under pressure." The proportion of China's exports to the U.S. has decreased from 19.2% in 2018 to 14.7% in 2024, continuously reducing its dependency on the U.S. Meanwhile, China adheres to "walking on two legs," steadily advancing the integration of domestic and foreign trade, nurturing and expanding the domestic demand market, promoting the integration of technological and industrial innovation, and continuously releasing the potential of the domestic market and service consumption. In 2024, approximately 85% of the hundreds of thousands of Chinese enterprises with export performance also engage in domestic sales, with domestic sales accounting for nearly 75% of total sales.
No matter how the international landscape changes, China's door to opening up will only open wider. In 2024, China maintained its contribution rate to world economic growth at around 30%, with GDP in the first quarter growing by 5.4% year-on-year, showing favorable trends, continuing to serve as an important engine for the world economy. Recently, the 137th China Import and Export Fair opened its doors to guests, with the number of participating export exhibition enterprises exceeding 30,000 for the first time, and the stability of overseas buyers maintained in both quantity and quality, witnessing the vitality and resilience of global free trade.
China will continue to promote high-level opening-up, implement high-level trade and investment liberalization and facilitation policies, create a first-class business environment characterized by marketization, rule of law, and internationalization, and work hand in hand with countries on the road of mutually beneficial cooperation and shared prosperity. During a recent visit to neighboring countries, President Xi Jinping emphasized that China is willing to work with regional countries to sign the upgraded protocol of the China-ASEAN Free Trade Area as soon as possible, to resist "decoupling and breaking chains," "small yards with high walls," and excessive tariffs with open, inclusive, and united cooperation, and to respond to the "jungle law" of the strong feeding on the weak with the Asian values of peace, cooperation, openness, and inclusion, and to address the world's instability and uncertainty with Asia's stability and certainty.
Appeasement cannot bring peace, nor can compromise necessarily earn respect. Once international trade reverts to the "jungle law" where the strong prey on the weak, all countries will become victims. China and Brunei are both builders, beneficiaries, and defenders of economic globalization and trade liberalization. We must stand on the side of fairness, justice, and historical correctness, promote all countries to jointly safeguard the United Nations-centered international system, uphold the WTO-centered multilateral trading system, jointly defend international fairness and justice, reject making deals at the expense of other countries' interests, and continuously promote inclusive and inclusive economic globalization.