Relations between Washington and Beijing are at their lowest in a long time amid disputes over commerce, know-how, human rights and China’s more and more aggressive strategy towards its territorial claims involving self-governing Taiwan and the South China Sea.
Jason Lee | Reuters
BEIJING — China’s ambassador to the U.S., Xie Feng, has blamed U.S. tariffs and export controls for a drop in commerce between the 2 international locations.
That is in line with a speech he gave by way of video on Tuesday at Forbes’ U.S.-China Enterprise Discussion board in New York, revealed on-line by the Chinese language Embassy within the U.S.
China-U.S. commerce fell by 14.5% within the first half of the 12 months from a 12 months in the past, Xie identified.
“It is a direct consequence of U.S. strikes to levy Part 301 tariffs on Chinese language imports, abuse unilateral sanctions and additional tighten up export controls,” he mentioned.
“Livelihoods of many households have been affected, and companies from each international locations have born the brunt.”
China’s commerce companions
The U.S. is China’s largest buying and selling companion on a single nation foundation.
12 months thus far, U.S.-China commerce fell additional in July with a 15.4% decline from the identical interval in 2022, China customs knowledge confirmed.
To close out China is to shut the door on alternatives, cooperation, stability and growth.
Xie Feng
China’s ambassador to the U.S.
“The most important threat is any decoupling between China and america, and the most important supply of insecurity comes from any confrontation between the 2,” he mentioned.
“To close out China is to shut the door on alternatives, cooperation, stability and growth.”
Exports stay a significant contributor to China’s economic system, though their share has fallen lately.
The U.S. authorities on Wednesday revised down second-quarter home product to a 2.1% annualized tempo, opposite to expectations there can be no revision, Reuters mentioned. The report mentioned decrease enterprise spending on tools contributed to the revision.
Xie on Tuesday known as for locating “a path for increasing mutually helpful financial cooperation and commerce between China and america.”
“Going ahead, we have to proceed taking concrete steps, regardless of how small they could look,” he mentioned, giving examples — reminiscent of making it simpler for individuals to journey between the 2 international locations, and renewing an settlement to cooperate on science and know-how.
On a regional foundation, the European Union and Affiliation of Southeast Asian Nations are China’s largest buying and selling companions. These commerce flows have additionally dropped this 12 months — albeit at a extra average tempo — amid a decline in international demand.
Xie on Tuesday identified China’s international dominance in commerce and in industries reminiscent of electrical automobiles. He famous that France, the U.Ok. and Japan had considerably elevated their international funding in China within the first half of the 12 months.
“Extra efforts might be made to guard international funding and guarantee nationwide remedy for foreign-invested enterprises,” he mentioned.
U.S. Commerce secretary visits China
In his remarks, Xie famous U.S. Commerce Secretary Gina Raimondo’s journey to China this week. Following her conferences with Chinese language authorities officers, the U.S. and China agreed to set up common communication channels on commerce, export controls and defending commerce secrets and techniques.
Raimondo advised reporters she “mentioned no” to China’s requests to cut back export controls and “retract” the manager order on outbound funding screening.
“We do not negotiate on issues of nationwide safety,” she mentioned.
As an alternative of containing China, it can solely curtail the suitable of American companies to develop in China.
Xie Feng
China’s ambassador to the U.S.
The U.S. authorities has cited nationwide safety considerations for its strikes to limit Chinese language firms’ purchases of superior semiconductors from U.S. companies.
In 2018, the Trump administration imposed tariffs on Chinese language items, to which Beijing responded with tariffs of its personal.
Xie claimed that common U.S. tariffs on Chinese language merchandise have been 19%, whereas the Chinese language tariffs on U.S. items averaged 7.3%.
“Is that this honest? Does this really serve U.S. pursuits?”
The ambassador assumed his function in Might after a interval of about six months wherein China had no ambassador to the U.S.
In August, U.S. President Joe Biden signed an govt order geared toward limiting U.S. investments into Chinese language semiconductor, quantum computing and synthetic intelligence firms over nationwide safety considerations. Treasury Secretary Janet Yellen is generally liable for figuring out the small print, which presently stay open to public remark.
Xie known as the manager order “a violation of the precept of free commerce.”
“It’s merely complicated that america, which repeatedly urged China to develop entry for international funding previously, is now imposing restrictions itself,” he mentioned. “As an alternative of containing China, it can solely curtail the suitable of American companies to develop in China.”
As a part of Raimondo’s journey to China, the U.S. Commerce secretary mentioned she spoke with greater than 100 companies and more and more heard from them that “China is uninvestible as a result of it is turn into too dangerous.”
“My message was there is a need to do enterprise, however we’d like predictability, due course of and a stage taking part in subject,” Raimondo added in an unique interview with CNBC’s Eunice Yoon on Wednesday.