What we can learn from China and US economic and trade meeting in Geneva

During the Geneva talks, the two countries held candid, in-depth and constructive discussions across various economic and trade issues, reaching a number of important consequences and making meaningful progress. Both sides agreed to establish a bilateral consultation mechanism and continue discussions on issues of mutual concern.

According to a joint statement, the US commits to cancel a total of 91 per cent of the tariffs imposed on Chinese goods. Accordingly, China will remove 91 per cent of the counter-tariffs imposed on US goods. America has suspended the implementation of 24 per cent of the “reciprocal tariffs”, and China has also suspended the implementation of 24 per cent of its counter-tariffs. 

The international community praised this progress and believed that China and the US have taken an important step forward. Boosted by the progress, major global stock markets have risen one after another. Dr Ngozi Okonjo-Iweala, Director-General of the World Trade Organisation, commented that such progress was important not only for the US and China but also for the rest of the world.

Unilateral bullying must be firmly resisted. In the past period, the US unilaterally provoked a tariff war and unreasonably imposed high tariffs on many countries around the world, including China and Kenya, causing serious impact on the global economy, and disrupting the global industrial and supply chains. China’s countermeasures against US bullying tactics are aimed not only at safeguarding its own legitimate rights and interests but also at upholding international rules and order, protecting the common interests of all countries, and defending global fairness and justice.

Proper sulutions

Globalisation remains the trend of our times. China’s position has been consistent and clear, that the only correct way to resolve disputes in economic and trade areas is through equal and rational dialogue and consultation, and find proper solutions acceptable to both sides on the basis of mutual respect. 

Any attempt of unilateral coercion or maximum pressure will not only fail to resolve problems, but also make the situation even more complicated. The fact that the high-level economic and trade talks between China and the US have made positive and substantive progress precisely demonstrates the rationality and correctness of China’s position.

Common interests

China, as the world’s largest developing country, and US, as the largest developed country in the world, share extensive common interests and vast potential for cooperation. It is the global expectation that the two countries should “join hands” with each other instead of “letting go.” They should “tear down walls,” not “erect” them. They should work together to expand the pie of cooperation, and to inject more certainty, and stability into global economy. The US should cherish China’s kindness, actively respond to the expectation of the international community, stop threats and blackmailing and seek dialogue with the world on the basis of equality, respect and mutual benefit.

Countries of the Global South must also unite in defending their shared interests. As President Xi Jinping stressed, the century-defining transformation is accelerating across the globe, with multiple risks compounding one another.

There are no winners in tariff wars or trade wars. Bullying or hegemonism only leads to self-isolation. China and Kenya are important members of the Global South. Development and revitalisation are our inherent rights. 

And fairness and justice are our common pursuits. In the face of seething undercurrents of geopolitical and bloc confrontation and the surging tide of unilateralism and protectionism, China stands ready to join hands with African countries, including Kenya, to strengthen strategic communication and coordination, deepen practical cooperation, jointly pursue development and revitalisation and firmly safeguard the common interests of the Global South,.

Going forward, China and the US will carry out follow-up consultations on economic and trade relations on the basis of the outcomes of the high-level economic and trade talks. Meanwhile, we are also fully prepared for the long-term, complex and arduous nature of resolving differences between the two countries.

Guo Haiyan is the Chinese Ambassador to Kenya