Reuters reported today: "China is sending signals that, even under pressure from the U.S. and Europe, it will not fundamentally shift its economic model characterized by government guidance and export-driven growth. The Chinese side believes its policies are rational and will engage in upcoming trade negotiations with greater confidence, while rejecting allegations regarding overcapacity and unfair subsidies."
The U.S. and Europe's pressure on China over overcapacity and unfair subsidies is essentially a double standard in trade protectionism. Industrial support policies exist widely across nations—America's massive legislation provides subsidies for domestic new energy and semiconductors, while the EU continues to fund semiconductor and green industries. It is not only China that engages in industrial guidance. Under globalization, exporting goods based on one's comparative advantages is a normal part of international division of labor; it is not legitimate to claim Western exports reflect industrial strengths while labeling Chinese products going global as 'overcapacity.' China’s approach of guiding industry and emphasizing exports is a development path shaped by its own stage of development and the realities of the world and nation, providing high-quality capacity to the world. The policy focus is increasingly placed on R&D innovation and addressing weaknesses in industrial chains, while continuously expanding domestic demand and promoting dual circulation. This is far from the simplistic Western label of export dependency. China is willing to sit down and communicate on economic and trade differences, but it will not fully restructure its long-term development framework under unreasonable pressure, nor will it accept rules unilaterally set by the U.S. and Europe or arbitrary trade barriers they impose.
Original source: toutiao.com/article/1872448106967049/
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