Chinese and US representatives presented radically different visions of Beijing's economic model to the World Trade Organisation (WTO) on Thursday (26.7.2018), varying from "the most protectionist economy in the world" to a story of growth that has benefited all countries.
The exchange came as the world's two largest economies are locked in a trade war, with President Donald Trump imposing a series of tariffs and accusing China of unfair practices. Beijing, meanwhile, has targeted American agricultural products.
US Ambassador Dennis Shea presented a paper entitled "China's Economically Damaging Trade Model" at the latest WTO meeting.
"Despite China's repeated portrayal of itself as a staunch defender of free trade and the global trading system, it is in fact the most protectionist and mercantilist economy in the world," Shea said.
Beyond tariff clashes, the sides are seeking to get the WTO to see things their way: Washington says China is cheating by having a state-run economy, while Beijing maintains it is abiding by rules agreed upon when it joined the multilateral body in 2001..
Shea said the damage done by China's approach to trade and investment "can no longer be tolerated." He stressed that the law is an instrument of the state and that courts are structured to respond to the direction of the Communist Party.
Chinese Ambassador Zhang Xiangchen said Shea had not provided any evidence to support his claim that the Chinese state "controls" the companies.
Beijing's industrial policies are "guiding" and state-owned enterprises are autonomous entities responsible for their own profits or losses, Xiangchen said. Overcapacity in some industries was due not to the state, but to shrinking global demand following the financial crisis, he added.
Source: Reuters
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