Page 60 - 2022 White Paper on the Business Environment in China
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2 White Paper on the Business Environment in China
so that "durable coexistence" becomes possible. showing a comparable industrial profile went up,
As for the US, it will work with its allies to first thus aggravating the total US trade deficit. Those
"save" the supply chain and "strengthen" their that sustained the cost of fees were US citizens
rules, and then "re-couple" with China. To realize and businesses, a situation that deprived many
those goals, the US needs many bargaining chips. of their jobs and brought a slowdown in GDP
And the tariffs are indeed a valuable one. China growth. Notwithstanding those, US steps towards
should not give in to the US' vilification of its Huawei should be assessed positively. Sanctions
industrial and trading chains and rules, because against the export of software and processor
differences between parties can be resolved chips and a broad diplomatic action effectively
only through WTO rules. And since a WTO panel curbed the expansion of the Chinese giant. Also,
has asserted that the US tariffs violate WTO and other Chinese businesses––Xiaomi, Oppo, Vivo,
General Agreement on Tariffs and Trade rules, and realme––can take advantage of Huawei’s
the Biden administration should withdraw them. enfeebling position. As the US government made
Moreover, contrary to Trump's claim, the US' use of its dominance in the processor chip sector,
tariffs against China have failed to stop the flow state authorities in Beijing will ramp up efforts to
of Made in China products into the US market, become self-sufficient in developing these tech
only that American consumers and down-stream solutions and software. America’s partial retreat
manufacturers have been paying the price for from the path of globalization it has followed so
them. According to an Oxford Economics study, far has come as an extra hurdle to the Xi Jinping
the tariffs have already cost the US over 110 administration, now facing the challenge of how to
billion US dollars, 245,000 jobs and on average transform the state’s development model and the
every household US$675. If not lifted, they will slowdown in GDP growth. In addition to domestic
cost the US another US$1.6 trillion, 732,000 jobs consumption and business investments, exports
and US$6,400 per household in the next five and innovation schemes remain what is referred
years. It’s time to work with China to strengthen as to sustainable sources of growth unlike those
bilateral economic, industrial and trade relations fueled by unprofitable credit investments. The
for mutual benefit (He, Tariffs). great-power rivalry along with economic and
civilization clashes will serve as an obstacle to
Expectations in 2022 economic cooperation. Coming to a seemingly
very beneficial understanding for the United
Inked by the US and Chinese officials on January States bolstered Donald Trump’s position before
15, 2020, the Phase One deal was nothing but the November 2020 presidential elections that
a “truce” in these two’s economic rivalry slated he lost. Amid the coronavirus pandemic, China
to dominate the first half of the 21st century. could meet its export targets in just 58%, or US$99
It is far from offering up a solution to the most billion out of US$173.1 billion. The agreed-upon
serious problem, or the far-reaching interference document contains a clause that allows either
of the Chinese state in its domestic economy. party to step away from its provisions if the two
As most of the trade tariffs remained in force, sides are unable to work out a joint solution
Beijing and Washington have still a long way to go under bilateral mechanisms. Under this scenario,
before reaching a full agreement. For the Trump US and Chinese authorities got a lot of room for
administration, it was a mistake to fix on the maneuver while being able to pull out if they
trade deficit with China and the negative balance consider the deal is unsatisfactory. In the short
came from the macroeconomic structure of the run, the Joe Biden administration is unlikely to
US economy. It is impossible to solve such a relax customs tariffs and sanctions. In addition,
complex conundrum resulting from the position Donald Trump as the Republic Party candidate
of the dollar worldwide and free movement built some of his campaign on accusing Biden of
of capital by introducing tariffs against some his allegedly conciliatory stance on China while
countries. Due to steps taken between 2017 and blaming the Democrat for neglecting the American
2021, the United States indeed lowered its trade working class. Aware of the perception shift
deficit with China, but its imports from countries among members of the US elites and criticism
of Barack Obama’s policies, Joe Biden will avoid
60
so that "durable coexistence" becomes possible. showing a comparable industrial profile went up,
As for the US, it will work with its allies to first thus aggravating the total US trade deficit. Those
"save" the supply chain and "strengthen" their that sustained the cost of fees were US citizens
rules, and then "re-couple" with China. To realize and businesses, a situation that deprived many
those goals, the US needs many bargaining chips. of their jobs and brought a slowdown in GDP
And the tariffs are indeed a valuable one. China growth. Notwithstanding those, US steps towards
should not give in to the US' vilification of its Huawei should be assessed positively. Sanctions
industrial and trading chains and rules, because against the export of software and processor
differences between parties can be resolved chips and a broad diplomatic action effectively
only through WTO rules. And since a WTO panel curbed the expansion of the Chinese giant. Also,
has asserted that the US tariffs violate WTO and other Chinese businesses––Xiaomi, Oppo, Vivo,
General Agreement on Tariffs and Trade rules, and realme––can take advantage of Huawei’s
the Biden administration should withdraw them. enfeebling position. As the US government made
Moreover, contrary to Trump's claim, the US' use of its dominance in the processor chip sector,
tariffs against China have failed to stop the flow state authorities in Beijing will ramp up efforts to
of Made in China products into the US market, become self-sufficient in developing these tech
only that American consumers and down-stream solutions and software. America’s partial retreat
manufacturers have been paying the price for from the path of globalization it has followed so
them. According to an Oxford Economics study, far has come as an extra hurdle to the Xi Jinping
the tariffs have already cost the US over 110 administration, now facing the challenge of how to
billion US dollars, 245,000 jobs and on average transform the state’s development model and the
every household US$675. If not lifted, they will slowdown in GDP growth. In addition to domestic
cost the US another US$1.6 trillion, 732,000 jobs consumption and business investments, exports
and US$6,400 per household in the next five and innovation schemes remain what is referred
years. It’s time to work with China to strengthen as to sustainable sources of growth unlike those
bilateral economic, industrial and trade relations fueled by unprofitable credit investments. The
for mutual benefit (He, Tariffs). great-power rivalry along with economic and
civilization clashes will serve as an obstacle to
Expectations in 2022 economic cooperation. Coming to a seemingly
very beneficial understanding for the United
Inked by the US and Chinese officials on January States bolstered Donald Trump’s position before
15, 2020, the Phase One deal was nothing but the November 2020 presidential elections that
a “truce” in these two’s economic rivalry slated he lost. Amid the coronavirus pandemic, China
to dominate the first half of the 21st century. could meet its export targets in just 58%, or US$99
It is far from offering up a solution to the most billion out of US$173.1 billion. The agreed-upon
serious problem, or the far-reaching interference document contains a clause that allows either
of the Chinese state in its domestic economy. party to step away from its provisions if the two
As most of the trade tariffs remained in force, sides are unable to work out a joint solution
Beijing and Washington have still a long way to go under bilateral mechanisms. Under this scenario,
before reaching a full agreement. For the Trump US and Chinese authorities got a lot of room for
administration, it was a mistake to fix on the maneuver while being able to pull out if they
trade deficit with China and the negative balance consider the deal is unsatisfactory. In the short
came from the macroeconomic structure of the run, the Joe Biden administration is unlikely to
US economy. It is impossible to solve such a relax customs tariffs and sanctions. In addition,
complex conundrum resulting from the position Donald Trump as the Republic Party candidate
of the dollar worldwide and free movement built some of his campaign on accusing Biden of
of capital by introducing tariffs against some his allegedly conciliatory stance on China while
countries. Due to steps taken between 2017 and blaming the Democrat for neglecting the American
2021, the United States indeed lowered its trade working class. Aware of the perception shift
deficit with China, but its imports from countries among members of the US elites and criticism
of Barack Obama’s policies, Joe Biden will avoid
60
