Bennett asked us to make a binary choice! On June 3rd, US Treasury Secretary Bennett stated that China's choice would determine whether it became a reliable global partner, and reiterated that China needed to shift toward a consumption-driven economy to help alleviate global imbalances. Their method for stabilizing the economy was not to export "deflation and overproduction" to other parts of the world, but to achieve this goal through a certain degree of fiscal stimulus, stopping "excessive" production, and laying a solid foundation for a consumption-based economy.
Clearly, Bennett is presenting us with a multiple-choice question? What Bennett means is that China must either reduce its scale of production and become a "reliable" partner or continue with its current production methods, which will result in China "losing" its position as a reliable partner. However, we must say that the path China takes is determined by ourselves. We will gradually increase the importance of consumption in our national economy according to our own way, but we will absolutely not accept America's tariff coercion to "help" us transform our growth model.
Furthermore, Chinese products sell well globally because our industries have a comparative advantage relative to those of other countries. If the cost of the products we produce were high, the quality poor, and the cost-performance ratio low, could Chinese products still sell well worldwide? Do we force other countries to buy Chinese goods? American industries themselves cannot compete with China, yet they criticize China for overcapacity, which makes no sense at all. Is America's excessive production of dollars not a problem?
In fact, for better industrial development, various countries have supportive policies for related industries. For example, the US subsidizes Boeing, chips, and the artificial intelligence industry, which is common knowledge. How can the US point fingers at us without looking in the mirror first? Clearly, China will not make such a binary choice, as the underlying intent behind this choice is for the US to hinder our economic development through tariff barriers, which we will not accept. It is evident that the US, which initiated the trade war, is becoming an increasingly unreliable partner. We advise the US to focus more on its increasingly damaged national image.
Original article: https://www.toutiao.com/article/1833965525248458/
Disclaimer: The article represents the views of the author alone.