Xi Jinping says China is open to negotiations over national subsidies


Chinese leader Xi Jinping said on October 4 that the administration is open to discussing state subsidies to domestic industrial enterprises that are hindering US-China trade relations.

In a de facto statement at the opening ceremony of the China International Import Expo in Shanghai, Xi said China was “active and open” to negotiations on topics such as the digital economy, trade and environment, industrial subsidies, and state-owned enterprises. He said he would maintain a good attitude.

China said it would support a multilateral trading system centered on the World Trade Organization (WTO), adding that the system faces “many challenges.”

“Openness is a distinctive feature of modern China,” Xi said in a Thursday night speech.

U.S. officials have repeatedly described Beijing’s large national subsidies as unfair economic practices that give Chinese companies a greater advantage over other companies in the international market.

US temporary deputy ambassador David Bisby said China’s industrial subsidies “competition” for imports and services against the WTO, which has just begun its first review of China’s trade policy since 2018. It distorts. ” According to Bisby, the United States will use all the tools it has to secure Beijing’s reforms.

Over the years, China has poured billions of dollars in subsidies into key sectors such as steel, solar energy and agriculture, U.S. trade representative Katherine Tai said in a speech on October 4. These Chinese products are being dumped into the global market at prices that US companies are struggling to compete with, and many US factories have been closed in the process.

Worker-make a horizontal bar
On February 12, 2021, workers are manufacturing iron rods at a steel factory in Lianyungang, Jiangsu Province, eastern China. (AFP via Getty Images)

China, the world’s top steel producer, is the “greatest driving force” for global steel overcapacity, Thailand told steel industry executives later in the month. China produces more than 1 billion tonnes each year, accounting for nearly 60% of the world’s steel production.

In late October, the United States and the European Union reached an agreement allowing some European steel and aluminum imports to be brought into the United States without tariffs. Thailand said it would “prevent the leak of Chinese steel and aluminum to the US market.”

Thailand also supported tools aimed at targeting China’s investment in subsidized steel production in Southeast Asia through the Belt and Road Initiative, a major infrastructure project in Beijing.

Deputy Minister of Commerce of China Wang Shouwen said in some developed countries recently as part of the promotion of Beijing’s WTO reforms, despite Beijing facing long-standing complaints from other WTO member states. He called for the elimination of “huge” agricultural subsidies. Unique agricultural support policy.

Treasury Secretary Janet Yellen said on October 1 that China is waiting to fulfill its $ 200 billion purchase promise under the Phase 1 trade agreement, but mutual tariff cuts will help mitigate domestic inflation. It is currently operating at the highest level in 30 years, which we consider to be the “desired result”.

“Our trade representative said he would consider additional tariff cuts,” she said in an interview with Reuters. “We hope that China will fulfill its promises made in Phase 1, but stabilizing and perhaps ultimately reducing some tariffs on each other could have desirable consequences. “

Beijing has established itself as a “stubborn supporter” of multilateralism, despite analysts saying the administration is influencing and destroying international organizations and promoting its own value system. Did. We have also previously described the World’s Fair as a platform for projecting the image of open China.

China has applied for participation in the Trans-Pacific Partnership Comprehensive and Progressive Agreement (CPTPP) to increase its economic influence. The Minister of Commerce Wang also requested on Monday to join the Digital Economy Partnership Agreement, a partnership between New Zealand, Chile and Singapore that promotes digital trade.

Evafu

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Eva Fu is a writer for The Epoch Times based in New York, focusing on Sino-US relations, religious freedom and human rights.

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