Benjamin Hughes

November 7, 2024 - 20:18 pm

No Clear Winners in Trade and Industrial Wars, China’s Ambassador to U.S. Boldly Asserts

China’s Ambassador to the U.S., Xie Feng, highlights that trade and industrial wars yield no winners, calling for U.S.-China cooperation on trade, climate change, and AI.

BEIJING - China’s newly appointed ambassador to the United States, Xie Feng, emphasized that there are “no winners in trade or industrial wars” in a recent address to the U.S.-China Business Council. His remarks, which spotlight the economic impacts of trade wars and the need for collaborative efforts, come just after Donald Trump’s presidential election win, bringing new concerns over potential trade-related tensions between the U.S. and China. Ambassador Xie encouraged U.S. companies to continue investing in China and expressed optimism for deepened U.S.-China cooperation on critical global issues like climate change, technology, and economic exchange.

Cooperative Economic Relations Key to Avoiding Trade Friction

At the business council event, Xie underscored that strengthening U.S.-China cooperation could maximize mutual economic benefits while easing trade-related tensions. He stated, “China and the United States can achieve many great and good things through cooperation, and the list of cooperation should be stretched longer and longer.” Xie did not directly reference Trump but hinted at the importance of a diplomatic approach over one driven by trade barriers or conflict.

Economic analysts are closely watching the proposed tariffs on Chinese goods that Trump suggested, which could lead to economic challenges for both economies. Trump’s new tariff plan, set at 60% on imports from China, far exceeds the 7.5%-25% tariffs implemented during his first term. Such policies have led to heightened concerns over China’s trade prospects and economic growth, as new tariffs could limit the exchange of goods, raise prices, and restrict market access.

Growth of U.S. Businesses in China a Testament to Successful Trade Relations

Ambassador Xie highlighted ongoing success stories of U.S. businesses in China as evidence of mutual economic benefit, showing the potential for productive U.S.-China relations despite previous tensions. For instance, McDonald’s has expanded rapidly across China, opening more new stores in the past year than in any other region, now representing 60% of its global store openings. Similarly, Shanghai has set a global record for Starbucks cafes, with over 1,000 locations in the city, reflecting the resilience of U.S. brands in China.

Xie praised these partnerships, stating, “The more success stories of mutually beneficial cooperation, the better.” His remarks suggest that trade relations offer opportunities for U.S. businesses to grow and thrive within the Chinese market, despite any existing economic or political strains.

Differences as Catalysts for Learning, Not Rejection in Trade Relations

Xie’s remarks also addressed the broader role of U.S.-China trade relations in promoting understanding between the two nations. He noted that the unique differences between the U.S. and China should serve as reasons to foster mutual learning and exchange, rather than as excuses for conflict. He stated, “Differences should drive exchanges, not serve as excuses for rejection and confrontation,” underscoring the importance of constructive engagement over isolation.

In this call for stable economic relations and collaboration, Xie suggested that China and the U.S. can together advance global stability by embracing one another’s economic strengths. He concluded that both nations benefit from recognizing each other's achievements as avenues for further growth, not as threats.

Potential Path Forward for U.S.-China Economic Partnership

While the challenges ahead remain significant, especially with potential new tariffs and evolving political landscapes, Xie’s message calls for a forward-looking approach to trade relations. The ambassador highlighted the ways in which mutual respect and cooperation have historically allowed both countries to achieve considerable economic progress, fostering a robust market for U.S. businesses in China and vice versa.

Economic observers believe that if the U.S. and China continue to prioritize collaboration, both countries can achieve enhanced trade stability and economic prosperity. As Xie noted, the global landscape is growing more complex, and stable relations between the U.S. and China could play a pivotal role in supporting the world’s economy.