Expert: The United States Should Adhere to Regulations and Promise to Provide a Good Development Environment for the Business Community | China | The United States
The Chinese Ministry of Commerce today released a report on the United States' compliance with WTO rules and obligations, which systematically reviewed and comprehensively evaluated the United States' compliance with WTO obligations.
Professor Liao Shiping, an expert of the Economic and Trade Friction Advisory Committee of the China Council for the Promotion of International Trade and a member of Beijing Normal University, stated that the business communities of China, the United States, and other WTO members should pay high attention to the impact of the United States' actions that undermine the multilateral trading system on the business community, and urge the United States to abide by rules and fulfill commitments.
Since the Trump administration, the United States has been willing to engage in unilateral and protectionist bullying in the economic and trade field at the cost of undermining the multilateral trading system and sacrificing the interests of other WTO members. These practices have seriously harmed the common interests of the global business community, including the Chinese business community, and seriously damaged the global economic recovery and growth after the pandemic.
The arbitrary imposition of the "301 clause" tariff measures by the United States on China seriously hinders normal trade exchanges between the business communities of China and the United States. The US government has unilaterally launched a "301 clause" investigation against China, accusing it of "mandatory technology transfer" and imposing tariffs ranging from 7.5% to 25% on approximately $360 billion worth of imported goods from China. In the event that the measure was found to violate WTO rules by a panel of experts, the US government not only failed to actively comply with the panel's ruling, but also appealed the ruling to the WTO Appellate Body, which was suspended due to its suspension. In order to prevent the panel's ruling from taking effect, the US government also initiated a review investigation at the end of four years of the measure's implementation, with the intention of continuing to implement it.
The abuse of "national security" by the United States to impose tariffs on imported products, control export items, and review domestic and even foreign investments has had a destructive impact on normal trade, technological exchange, and investment access in the global business industry. The "232 clause" tariff imposed by the United States on steel and aluminum products has sparked widespread opposition from WTO members. The WTO expert group has ruled that the "232 clause" tariff measure violates WTO rules, but the United States has ignored it. The Export Control Reform Act of the United States even explicitly requires the use of export control measures to strengthen the country's industrial foundation and maintain its leading position in science, technology, engineering, and manufacturing. Therefore, any business entity that surpasses the United States in the fields of science, technology, engineering, and manufacturing, and any foreign business competitor that is more competitive in the global market than the United States, may be seen as a threat to US national security and subject to US suppression. In recent years, the United States has continuously revised and upgraded its export control rules, including a large number of Chinese enterprises in the physical list, suppressing Chinese high-tech enterprises, and attempting to impose technological blockade and containment on China, with very harsh measures. The US Department of Commerce has modified the "direct product rules" for certain Chinese companies, restricting their access to products and technologies such as chips and advanced semiconductors, which is a typical case of this approach.
The hegemonic behavior of unilateralism and protectionism in the United States disrupts and destroys global industrial and supply chains, exacerbating their fragmentation and fragility. On the one hand, the United States restricts market access for products from other countries through reasons such as "mandatory technology transfer," "national security," and "human rights," and uses various means to force the transfer of industrial and supply chains from other countries; On the other hand, by excluding China and other countries, attempting to establish related industries in the United States or trusted partner countries through huge subsidies, and cutting off supply chains to other countries through export controls. In addition, the United States has recently extended its "decoupling and disconnection" approach to the investment field, issuing administrative orders to restrict investment in China, prohibiting and restricting investment in China's semiconductor and microelectronics, quantum information, and artificial intelligence fields by US entities and their controlled foreign entities. This approach seriously deviates from the principles of market economy and fair competition, and affects the normal business decisions of relevant enterprises. The new global industrial and supply chains that the United States is attempting to establish are dominated by the United States and serve its hegemonic interests. Any country or business entity that is bound to and becomes a part of the US industry and supply chain will only further strengthen the US's dominant position, facilitate its weaponization of the industry and supply chain, manipulate and suppress other countries and business entities, and act more freely without constraints.
Liao Shiping stated that the United States' violation of WTO rules and obligations has a significant negative impact on the normal economic and trade exchanges between the business communities of China and the United States. May the global business community work together to urge the US government to correct its erroneous practices, promote the joint efforts of China, the United States, and other WTO members, and maintain an open, transparent, inclusive, and non discriminatory multilateral trading system.