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The Bottom Line will Never Give in. China has the Strength to Cope with Various Challenges.

Source:Iris Liang Time:2019-5-13 10:21:22

From May 10th, the US started to impose a 25% tariff on 200 billion US dollars of Chinese exports to the United States. The eleventh round of high-level Sino-US economic and trade consultations concluded in Washington on the same day conveyed China’s consistent and firm stance: the application of tariffs will not solve the problem, and cooperation is the only correct choice between China and the United States, but cooperation is principled and on major issues of principle. The Chinese side will never give in. SEKO Machinery always believes that only a win-win situation can really win the hearts of the people. It is our consistent aim to help our customers create greater profits and value. The intelligent heat preservation bright annealing furnace adopts induction heating technology, and the temperature difference control in the furnace can be accurately controlled at ±1-2 °C, which is a tool for producing high quality industrial stainless steel welded pipe.

On the 12th, at the China-US Trade Relations Symposium held by the National Development and Strategy Research Institute of Renmin University of China, experts at the meeting said that in the face of the threat of US tax increase, China adheres to the bottom line, defends national dignity, safeguards the interests of the people, and shows the great powers. Demeanor. Adding tariffs is unpopular and contrary to the trend of the times. China has the determination, confidence and confidence to cope with all challenges.
Adding tariffs such as "seven wounds"

"Adding tariffs has an impact on both companies, but it is more harmful to American companies." Gao Lingyun, a researcher at the Institute of World Economics and Politics of the Chinese Academy of Social Sciences, said that the US market demand in China will not change due to tariff increases. Eventually, US importers will pass high tariffs to their consumers and retailers.

"From the data analysis, if the United States is willing to go its own way, adding tariffs to all Chinese exports to the United States will greatly push up the domestic price level and cause inflation. This is undoubtedly a 'seven-injury' that kills others." Gao Lingyun said.

The increase in tariffs has also been strongly opposed by the United States. Recently, many industry associations in the United States issued a statement opposing the escalation of tariffs on China. Among them, the lobbying organization called “Treaty Damage to the US Hinterland” estimated that raising the tariff to 25% would damage nearly 1 million US jobs and increase financial market turmoil.

Chen Wenling, chief economist of China International Economic Exchange Center, calculated the accounts: When the US imposed tariffs on Chinese goods of 50 billion US dollars and 200 billion US dollars, more than 70% of the list was intermediate goods and investment products. “With such a large proportion, tariffs will eventually be borne by American companies, consumers and farmers.”

In Chen Wenling's view, the trade war provoked by the United States is ineffective. The US wants to solve the trade deficit, and as a result, the trade deficit with China, the EU and other economies is rising rather than falling; the global industrial chain has not accelerated its transfer to the US, but the US Tesla, Ford and other auto companies are Transfer to the Chinese market.

“Some US companies have a very large share of profits in China. Once they leave the Chinese market, they may have difficulty in survival.” Liang Ming, director of the Institute of Foreign Trade of the Ministry of Commerce, used big data to calculate the impact of the $200 billion commodity upgrade tariff. Most of these commodities still need to be imported from China, and a large part of Chinese goods are not highly dependent on the United States, and there are many other markets that can be exported.

Experts agree that the spillover effects of the trade war spread across the globe, posing serious challenges to the global order, rules, trading system and supply chain, and even negatively affecting global peace and development.

"We stress not to use tariffs and balance each other's demands. This is not only a requirement of China, but also a rational choice for countries to face unreasonable trade requirements." Dong Yan, Director of the International Trade Research Office, Institute of World Economics and Politics, Chinese Academy of Social Sciences It is the common voice of the experts: the two benefits and the struggle are all hurt, and cooperation is always the correct path to solve the Sino-US economic and trade issues.

The principle of the bottom line can not let the ordinary mind to talk and talk

In the face of the US accusation that the Chinese side "regressed" led to unsuccessful negotiations. Experts said that before the two sides reached a final agreement, the US accusation was untenable and irresponsible. On the contrary, it is the continued pressure from the US and the elevation of the asking price that led to the setback in the negotiations.

"The request put forward by the US side involves China's core interests and major concerns. This is the bottom line and must not be compromised." Wei Jianguo, vice chairman of the China Center for International Economic Exchanges, said that a successful agreement must ensure that both parties are satisfied with each other. All have to make some compromises. If only one party is satisfied and the other party’s concerns are not respected or taken care of, even if such an agreement is reached, it will not be implemented for a long time or even overturned.

After more than a year, the Sino-US economic and trade consultations have been carried out for eleven rounds. Experts believe that this fully shows that consultation is a protracted war. We must maintain a normal mind and be fully prepared from the psychological and work levels.

Experts said that China's position has remained unchanged in maintaining the overall interests of China-US relations and consolidating Sino-US economic and trade cooperation. The two countries should follow each other under the principles of mutual respect, equality and mutual benefit, and resolve their core differences through dialogue rather than confrontation.

Firmly do your own thing, be responsive to the challenge

“More than 8,000 meters is the stratosphere, which belongs to the ‘thin air zone.’ It takes more effort to climb over this area. This is just like the stage in which the Chinese economy must move towards high quality.”

Taking mountaineering as a metaphor, Wang Wen said that at the current stage, we need to guard against arrogance, arduous struggle, and persevere in accordance with the established road map.

"Time is on our side" "In the long history of history, economic and trade frictions are only a small wave." Experts at the meeting believe that in the process of development of big countries, some twists and turns are not bad things, but can test our ability.

In response to the challenges, China has confidence and confidence.

Zheng Shuiquan, deputy secretary of the Party Committee of Renmin University of China, said that after 70 years of wind and rain, China has both deep strength and great potential, as well as strong anti-attack and anti-risk capabilities. We are confident, determined and capable of coping with various risk challenges.

"No matter how the future situation changes, we must do our own thing well." Zhang Yansheng, chief economist of China International Economic Exchange Center, said that in an open environment, without strong comprehensive national strength and corporate competitiveness, it will be "wolf". Eat it. In the future big power game, we must work hard to enhance our overall national strength and improve our competitiveness.

To meet the challenges, China has the determination and action.

Since last year, in response to the external severe environment and internal downward pressure, a series of policies such as the “Six Stability” issued by the central government have come into effect, and the Chinese economy has maintained a good development trend.

Wang Jinbin, deputy dean of the School of Economics of Renmin University of China, said that the facts prove that under the environment of stability and change, the "six stable" policy is an important "magic weapon" to ensure the stability of the macro economy. To continue to adhere to this policy, the focus is on stabilizing expectations and stabilizing confidence.

According to Yan Jinming, executive director of the National Development and Strategy Research Institute of Renmin University of China, the transformation of new and old kinetic energy has been further accelerated this year, new industries are booming, new forms of business are emerging, and the Chinese economy has great resilience and flexibility, and there is a huge market and economy. The development prospects are optimistic. “The current key to doing your own thing can continue to enhance the development momentum.”

"Cooperation and win-win is an unstoppable development trend. Trade development must continue to be in line with the country's major strategies, and further promote economic cooperation with countries along the 'Belt and Road'. The road to high-quality development in China will become broader and wider." Chen Wenling Say.

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Iris Liang
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