Disastrous effect of American bullying are coming ——voices from the High-end Seminar on Sino-U.S. Economic and Trade Relations

The damage caused by U.S. bullying on Sino-U.S. economic and trade issues is becoming obvious, which undermines the prospects for global economic growth, the supply chain structure of Global Value Chains, global scientific and technological exchanges and cooperation and industrial progress, international economic order and multilateral cooperation mechanism. The above comments came from the High-end Seminar on Sino-U.S. Economic and Trade Relations held in Beijing on May 31.

The seminar, sponsored by China Center for International Economic Exchanges, convened former senior officials from government departments overseeing macro-economy, foreign trade, diplomacy, and finance, and some heads of trade associations. Participants at the seminar believed that China has the confidence and determination to be “as stable as a mountain” facing with American bullying. China will commit firmly to the development concept of innovation, coordination, green, openness, and sharing, deepen reform and opening up, and accelerate high quality economic development. Besides, China will adhere to the rules-based multilateral trading system and strive to maintain the global economic order.

Delegates believe that in the economic and trade frictions between China and the U.S., Chinese high-tech enterprises and Sino-US scientific and technological cooperation and exchanges are suffering maximum pressures because of U.S. repression. However, under the background of economic globalization, the division of labor among countries is becoming more and more intensive, only scientific and technological exchanges and cooperation between countries can facilitate innovation and development. In an attempt to keep its technological superiority, the U.S. used brutal administrative intervention to crush its competitors, which can only result in shooting itself in the foot. A report by the Information Technology & Innovation Foundation, an American think tank, said American businesses could lose between $14.1 billion and $56.3 billion in five years.

The U.S. and China are the two largest economies in the world, accounting for 40% of the world economy in 2018 and 23% of the world's total trade. The consequences of American bullying will not only be felt by the two countries, but also extend to the rest of the world.

According to related data, the growth rate of international trade has dropped from 4.1% in the second quarter of 2018 to 2.2% in the first quarter of 2019 as a result of Sino-U.S. economic and trade frictions. Global foreign direct investment (FDI) have fallen by 41% in the first half of 2018, from $800 billion in the first half of 2017 to $470 billion.

Continued intensification of trade frictions by the U.S. must artificially obstruct the free flow of international capital, commodities and talents, which directly damages the stability and sustainability of the global economy.

The U.S. bullying will make great damage to global scientific and technological exchanges, cooperation and industrial development, and the spillover effect of effective international technical cooperation over the years will be reduced. The U.S. unilateralism and protectionism will encourage global populism, erode the basis of multilateral cooperation, and endanger the sustainability of global trade and the openness of economic and trade rules.