AstheU.S.continuestoescalatetradetensions,Chinahasbeenresolutelyfightingbackagainsttheunilateralism,protectionism,andhegemonismbasedoninternationalrules.Meanwhile,itactsasaresponsiblepowerbyintroducingmoremeasurestoopenitsdoorwidertotheinternationalcommunity.
ChinahasbeentakingafairandreasonableattitudewhendealingwiththeU.S.investigationsunderSection232and301.First,ithasbeenwillingtoresolvethetradedisputethroughbilateralnegotiationssothatthespatwillnothurteitherside,butachievemutuallybeneficialresults.Second,Chinahasmadeitclearthatitwillresolutelydefenditsnationalinterests.OncetheU.S.insistedonplacingtariffsonChinesegoods,ChinawouldretaliateandresorttotheWorldTradeOrganization(WTO)disputesettlementprocess.Finally,whentheU.S.didactagainstChina,itfoughtbackwithalistofU.S.importgoodssubjecttoChina鈥檚tariffaswellasacomplaintfiledtotheWTObasedoninternationalrules.
Meanwhile,Chinadidn鈥檛takethelowroadbydisturbingtheglobaltradeorderasfreelyastheU.S.had.Instead,itproactivelyintroducedmeasurestofurtherreformandcontinueopening-upforthebenefitoftheworld.
First,Chinaeasedrestrictionsonmarketaccessofforeigninvestmenttothecountrytoincreaseopportunitiesinmoresectors.Afterfourdecadesofreformandopening-up,foreigninvestorsnowhaveaccesstomostofChina鈥檚manufacturingsectorswiththebarleftforthoseindustrieslikeshipbuildingandautoandaircraftmaking.Asthecompetitivenessimproves,itisalsoopeningmoreservicesectorstoforeigninvestors.
Thelatestnegativelistforforeigninvestment,whichbecameeffectivefromJuly28,isshortenedfromtheformer63itemsto48.Restrictionsoninvestingin22sectorsincludingbanking,carmaking,railways,powergrid,andgasstationswereremovedorloosened.Forexample,thereisnownorestrictionontheproportionofsharesheldbyforeignersinbanking.Theforeignshareceilinginsecurities,fundmanagementfirms,futuresagents,andlifeinsuranceenterprisesisincreasedto51percent.In2021,allrestrictionsonforeignsharesinthefinancialsectorwillberemoved.Asforautomaking,foreigncapitalcannowgainfullaccesstoinvestinginspecial-purposevehiclesandnew-energycars.Therestrictionsoncommercialvehicleswillbeliftedin2020.Inanothertwoyears,theregulationthatlimitstheproportionofforeignsharesinjointventuresformakingpassengervehicleswillbeabolishedaswellastheregulationthataforeigncompanycansetupnomorethantwojointventuresproducingthesamekindofwholevehicleswillalsoberemoved.Inthesectorsofagricultureandnaturalresources,Chinanowpermitsforeigncapitaltoengageinmininggraphiteandsmeltingrareearthandtungsten.
Second,Chinaisworkingtoimproveitsbusinessenvironmenttoattractforeigninvestors.TheyincludeeffortsinaligningwithinternationalprevailingtraderulesandnegotiationsforabilateralinvestmenttreatybetweenChinaandtheEuropeanUnion.Chinaisalsoimprovinggovernmenttransparencyandlawsandregulations,suchasonintellectualproperty,throughthepracticeofbuildingpilotfreetradezones.InApril,ChinaannouncedtobuildHainanintoanotherpilotfreetradezonewheretrade,investment,andintellectualpropertypracticesandlawswillbeimprovedforabetterinvestmentenvironment.
Chinalaunchedantitrustactionstoencouragecompetitionandgivefullplaytothemarket鈥檚decisiveroleinallocatingresources.Intheinstitutionalreformthisyear,thenewStateAdministrationforMarketRegulationwasestablishedforintegratedandeffectivelawenforcementregardingantitrustcases.Aguidelineforthisisalsointhepipeline.Besides,localgovernmentsareintroducingincentivesforabetterbusinessenvironment.
Third,Chinapromisedtostrengthenintellectualpropertyprotectioninresponsetoforeignbusinesses鈥檓ajorconcerns.WithanewlyreshuffledStateIntellectualPropertyOffice,lawenforcementagainstintellec-tualpropertyinfringementwillbeenhancedandthedeterrenceofconsequentpenaltyforlawbreakingwillbeensured.ChinaalsoencouragestechnologyexchangesandcooperationbetweenChineseandforeignfirmsandfurtherprotectsthelegitimateintellectualpropertiesofforeignbusinessesinChina.
Lastbutnotleast,Chinaistakingtheinitiativetoexpandimportsbyloweringtariffsonsomeimportedgoods.BeginningonJuly1,Chinaslashedtariffsonvehiclesandautoparts.Forcarimports,the25-percenttariffleviedon135itemsandthe20-percentdutyonfouritemshavebothbeenreducedto15percent.Importtariffson79autopartitemshavebeencutto6percentfromthecurrentlevelsof8percent,10percent,15percent,20percent,and25percent.Inadditionitpromisedtoopenthegovernmentprocurementmarketforthe47signatoriesoftheWTO鈥檚AgreementonGovernmentProcurement.Besides,thefirstChinaInternationalImportExpoisslatedtotakeplacethisNovemberinShanghaiasaplatformforChinatopromoteglobalizationandtoprovidetheworldwithpublicgoods.
Thesemeasuresoffurtherreformandopening-upstandinpointedcontrastwiththeU.S.actionsimpedingeconomicglobalization.Whiledevelopingitself,Chinaisworkingtobenefittheworld.Suchmeasuresasbroadeningmarketaccess,improvingthebusinessenvironment,andprotectingintellectualpropertieswillattractinvestorsfromdevelopedeconomiestosharethedividendsofChina鈥檚opening-up.Importsthatneedtobeexpandedincludeagriculturalproduce,oilandnaturalgas,cars,dailyconsumergoods,andhigh-techproductssuchascomponentsusedincapital-andtechnologyintensiveindustries.Exporters,fromeitherdevelopedeconomiesoremergingones,areabletoshareChina鈥檚marketwiththeirrespectivecompetitiveproducts.
Inanutshell,indealingwiththetradespatprovokedbytheU.S.,Chinainsistsondefendingitslegitimatenationalinterestsandmultilateraltraderulesinafairandreasonablemanner.Chinadidn鈥檛andwillnotescalatethetension,butwillfirmlyfightbackagainstU.S.provocation.ItsdeterminationtofurtherreformandopenwiderwillnotbecompromisedunderthepressurefromtheU.S.AnopenChinesemarketwillbenefitnotonlyitselfbutalsotheentireworld.Chinaisactingasaresponsiblecountry.
SUQINGYIisaseniorresearchfellowandDeputyHeadoftheDepartmentofInternationalTradeattheInstituteofWorldEconomicsandPoliticswiththeChineseAcademyofSocialSciences.