The Information Office of the State Council (SCIO) has published a white paper of 36,000 words on the trade dispute with the U.S. entitled “Facts about the China-U.S. trade dispute and China’s stance”, accusing the U.S. of bullying trade tactics and economic intimidation. However, the Chinese government still hopes economic cooperation with the U.S. will resume. Although Washington’s “America first” economic policy and punitive tariffs on Chinese products had “greatly undermined” bilateral economic ties and threatened the world’s multilateral system of trade. The White Paper is the first comprehensive Chinese government statement on the escalating conflict between the world’s two biggest economies. It was published as the Trump administration’s tariffs on another USD200 billion in Chinese goods kicked in and China retaliated with its own tariffs on USD60 billion worth of imports.

“Cooperation is the only correct option for China and the United States, and only a win-win approach will lead to a better future. China’s position is clear, consistent and firm,” the White Paper said. China is firmly committed to safeguarding its national dignity and core interests. “China does not want a trade war, but it is not afraid of one and will fight one if necessary. China has kept the door to negotiations open, but negotiations can only happen when there is mutual respect, equality, good faith and credibility. Negotiations cannot be conducted under the threat of tariffs, or at the cost of China’s rights to development.”

The main points are:
1. China is firmly committed to the sound development of China-U.S. economic and trade relations. “China would like to work with the U.S. in the same direction, act in a spirit of mutual respect and win-win cooperation, focus on economic and trade ties, and properly manage economic and trade differences.” China is willing to resume negotiations with the U.S. on a bilateral investment treaty, and launch bilateral free trade agreement negotiations when appropriate, the White Paper said.
2. China is firmly committed to the reform and improvement of the multilateral trading system. China is firm in observing and upholding the World Trade Organization (WTO) rules, supports an open, transparent, inclusive and non-discriminatory multilateral trading system and necessary reform of the WTO, and firmly opposes unilateralism and protectionism.
3. China is firmly committed to protecting property rights and intellectual property rights (IPRs). China will keep improving its laws and regulations on IPR protection, and enhance the quality and efficiency of IPR reviews. China protects the lawful IPRs of foreign businesses in strict accordance with the law, and takes stern measures to address all types of IPR infringement cases.
4. China is firmly committed to protecting the lawful rights and interests of foreign businesses in China. “China treats all businesses registered in China equally. China will always protect the lawful rights and interests of foreign investors and foreign-invested businesses, and take firm measures to address violations of their lawful rights and interests in accordance with the law.”
5. China is firmly committed to deepening reform and widening opening-up. “China will not reverse its course, but only deepen reform. China will not close its door to the world, but only open wider. The market will play a decisive role in the allocation of resources and the government will play a better role to encourage competition and oppose monopoly.”
6. China is firmly committed to mutually beneficial cooperation with other developed and developing countries. China will work with the European Union to expedite the negotiations on the China-EU Investment Agreement, and will accelerate negotiations on the China-Japan-South Korea Free Trade Area.
7. China is committed to building a community with a shared future for humanity.

To compose its White Paper, the Chinese government mainly relied on foreign sources. Of the paper’s 88 footnotes, only a handful cite China’s National Bureau of Statistics (NBS) or the Ministry of Commerce (MOFCOM), with the vast majority referring to overseas research, think tanks and analysts, from former U.S. Treasury Secretary Larry Summers to specialists at the Peterson Institute for International Economics in Washington. Analysts said that using respected U.S. and other foreign sources to make its argument strengthened the intended appeal of the document, which was also released in eight languages.

The White Paper can be downloaded on the website of the State Council Information Office (SCIO) here.