China calls protectionism a two-edged sword

Beijing ready to promote 'made in France' exports

FE Team | Published: January 24, 2018 22:51:30

BEIJING, Jan 24 (Agencies): Protectionism is a double-edged sword that will harm both sides, China's foreign ministry said on Wednesday after U.S. President Donald Trump signed into law a steep tariff on imported solar panels.
The tariff of 30 percent is among the first unilateral trade curbs imposed as part of a protectionist agenda to help U.S. manufacturers, but which has alarmed Asian trading partners that produce lower cost goods. The administration also put a tariff on imported washing machines.
China, the world's biggest solar panel producer, has already branded the move an "over-reaction".
"Protectionism is a double-edged sword. It not only wounds others but wounds themselves," foreign ministry spokeswoman Hua Chunying told a daily news briefing.
But China is confident in its own economy, which this year will see the scale of domestic consumption overtake the United States for the first time, she said, citing comments the previous day by Chinese Foreign Minister Wang Yi in Chile.
"This means that after 2018, the world's biggest market will be China," Hua said, adding that the market had been developed on the back of people's sweat rather than having been snatched away from anyone.
However, some economists remain sceptical.
"It's impossible China's consumption will surpass the U.S. in 2018," said Tang Jianwei, an analyst at the Bank of Communications in Shanghai.
"Consumption accounts for 70 per cent of the U.S. economy, while in China it only accounts for 30 per cent," he said. "And China's economy is not as large as the U.S.'s yet."
China has not specified how it will respond to the new U.S. tariffs, beyond saying it will defend its legitimate interests.
There are many countermeasures China could take, the Global Times tabloid, published by the ruling Communist Party's official People's Daily, s2id in an editorial on Wednesday.
Meanwhile, China is ready to promote the export of "made in France" products in the Chinese market to rebalance trade between China and France, an official with the Chinese Ministry of Commerce (MOC) has said.
Zhai Qian, an official at the MOC Department of European Affairs, made the remarks on Monday during a road show held in Paris for the China International Import Expo (CIIE).
China is ready to create more practical platforms, including CIIE, to facilitate the export of French products, "especially those with French characteristics", Zhai said.
China will host the first China International Import Expo in Shanghai in November of 2018, which is a big step for China to promote economic globalization and open up its market as well as a public good that it provides for inclusive and mutually-beneficial global growth.