Chinese Ambassador to Australia, Cheng Jingye, in a signed article on Thursday said China rejects escalation of the U.S. initiated trade war, which is spreading harm around the world.
Cheng made the statement in an article published on the Australian Financial Review.
He said the decision by the U.S. to impose additional tariffs on Chinese imports is a gross violation of the Osaka consensus reached by the China and U.S.
He added that it tramples on multilateral trading rules, harms both countries’ interests, threatens the global industrial and supply chain, and drags down global trade and economy.
By quoting a series of figures, the article showed that economists polled by Reuters forecast the probability of a U.S. recession in the next two years has risen to 45 per cent.
“Its manufacturing PMI (Purchasing Managers’ Index) plunged to its lowest in 10 years.
“Should the U.S. follow through on extending all tariffs to 25 per cent, the aggregate loss over the next 10 years would amount to 1 trillion U.S. dollars.’’
Cheng said the price of the U.S. administration’s tariffs will be paid by common American households.
He noted that JPMorgan researchers estimate that American families will have to pay 1,000 dollars in additional costs annually.
In the article, the ambassador told readers that the trade war affected not just China and the United States.
“By unilaterally imposing tariffs, the U.S. has circumvented the WTO dispute settlement system and breached the most fundamental principles and rules of the WTO.
“It broke the international trade rules and wrecked the multilateral trade system.’’
The ambassador rejected the U.S. accusation of China about IP theft and forced technology transfer.
“After over 40 years of reform and opening up, China has made notable achievements in technological innovation.
“In 2018, the contribution of China’s scientific and technological progress to its economic growth is expected to exceed 58.5 per cent.’’
Cheng said more than 20,000 foreign companies established businesses in China in the first half of 2019.
“Why should a foreign company rush to China if it would be subjected to forced technology transfer and lose profits.
“China will unswervingly deepen reform and opening up, our huge market will bring more opportunities to the world.’’