Ethiopia: The Continuing Trade Dispute and Its Likely Effects

On the heels of the various tariffs imposed by the United States of America on all its trading partners, nations worldwide have jump-started putting in place a broad range of measures. Though they have come up with various potential solutions, achieving the desired goal is turning out to be a wild goose chase. To everyone’s surprise, the issue is becoming the talk of the wider international community and attracting the attention of every Tom, Dick, and Harry.

As things stand at present, people from all walks of life have been cross-pollinating their ideas, feelings and thoughts on the topic of the imposed tariff time and time again. On top of that the whole situation has gone from the frying pan into the fire and is moving into uncharted waters, leaving many in uncertainty.

Frankly speaking, the entire thing caught between the hammer and the anvil as well as the devil and the deep blue sea. Some people argue that if the entire situation keeps going this way, getting back on the right track will be easier said than done.

To this point, there is not a single solution put forward to address the ongoing trade wars through round discussion or other means. What is more, no nations are seen making an effort to turn the tide or coming up with their own ways to get to the bottom of the predicaments unfolding in every part of the world. Some of them have continued upping the ante.

As the agenda on the table has continued to be the imposed tariffs, people have stayed tuned to various print and electronic media outlets to see who comes up with what retaliatory measures to tackle the problem.

Following the imposed tariffs, China’s highly anticipated stance has been outlined in the following statement:

Recently, the United States has imposed tariffs on all its trading partners, including China, under various pretexts. This severely infringes upon the legitimate rights and interests of all countries, severely violates World Trade Organization (WTO) rules, severely undermines the rules-based multilateral trading system, and severely disrupts the global economic order. The Chinese government strongly condemns and resolutely opposes such move.

By taking such action, the United States defies the fundamental laws of economics and market principles, disregards the balanced outcomes achieved through multilateral trade negotiations, ignores the fact that the U.S. has long benefited substantially from international trade, and weaponizes tariffs to exert maximum pressure for selfish interests. This is a typical act of unilateralism, protectionism and economic bullying. Under the guise of “reciprocity” and “fairness,” the United States is playing a zero-sum game to pursue in essence “America First” and “American exceptionalism.”

It attempts to exploit tariffs to subvert the existing international economic and trade order, put U.S. interests above the common good of the international community, and advance U.S. hegemonic ambitions at the cost of the legitimate interests of all countries. Such action will inevitably face widespread opposition from the international community.

China is an ancient civilization and a land of propriety and righteousness. The Chinese people value sincerity and good faith. We do not provoke trouble, nor are we intimidated by it. Pressuring and threatening are not the right way in dealing with China. China has taken and will continue to take resolute measures to safeguard its sovereignty, security, and development interests.

China-U.S. economic relations should be mutually beneficial and win-win in nature. The United States should go along with the shared aspiration of the peoples of the two countries and the world and minding the fundamental interests of the two countries, stop using tariffs as a weapon to suppress China economically and stop undermining the legitimate development rights of the Chinese people.

As the second largest economy and second largest market for consumer goods, China is committed to opening ever wider to the world, no matter how the international situation changes. We will continue to advance high-standard opening up. We will steadily expand institutional opening up in rules, regulations, management, and standards. We will implement high-standard policies for trade and investment liberalization and facilitation. We will foster a first-class market-oriented, law-based, and internationalized business environment. And we will share our development opportunities with the world to achieve mutual benefits.

Economic globalization is the only way to human progress. The WTO-centered, rules-based multilateral trading system has been critical in promoting global trade, economic growth and sustainable development. Openness and cooperation are a historical trend. The world will not, and should not, return to mutual isolation or fragmentation. The whole world aspires for win-win cooperation. Economic bullying that shifts risks onto others will ultimately backfire. Making economic globalization more open, inclusive, balanced and beneficial to all is a shared responsibility of the international community.