The “Liberation Day” of the United States of America ignited a war without gunpowder — a trade and tariff war that has caused not only a crash in domestic stocks, bonds, and currency markets but also wiped out vast amounts of global wealth. China has firmly said “no” to the US’s tariff bullying, drawing international attention. I would like to share some perspectives on why China has taken this approach.
The US abuse of tariffs, under the guise of “reciprocity and fairness”, violates WTO rules, severely undermines the rules-based multilateral trading system, and disrupts the global economic order. All countries, regardless of their size, are equal. The US abuse of tariffs is a typical act of unilateralism, protectionism and economic bullying. Its essence is to deprive the vast majority of developing countries of their rights to development and progress, keeping them permanently at the lower end of the global supply chain in labour-intensive and low-value-added industries, and serving as the workforce of developed economies.
Certain countries, unwilling to engage in direct confrontation with the US, opt for concessions in an attempt to appease it and secure preferential treatment. Facts have proved that making unilateral concessions on economic and trade issues is like “bargaining with a tiger for its skin”, which will only embolden the US to escalate its demands. The sobering lessons of the devaluation of the US dollar, the collapse of the Bretton Woods system, and the Plaza Accord should not be ignored. If the world tolerates America’s arbitrary tariff abuses, we risk plunging back into the Great Depression, or even a regression to a lawless jungle where “might makes right”.
Against the backdrop of millennia-long human civilisation, America’s two-century existence is a blink of an eye. History marches onward, undeterred by the will of any one nation. The US is merely one country. It does not represent the whole world. Its share of the global GDP, once peaking at roughly 50 per cent, has since dwindled to about 26 per cent. Its foreign trade only accounts for 13 per cent of global trade volume, while the remaining 87 per cent is conducted among over 190 other countries. These nations possess vast potential for cooperation and are fully capable of driving stable growth in the global economy.
Moreover, the international economic order is not America’s “one-man show”. Major regional trade pacts like the Regional Comprehensive Economic Partnership (RCEP), Digital Economy Partnership Agreement (DEPA), and Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) have all emerged as benchmarks for regional economic cooperation — without the US’s participation. The Financial Times has rightly pointed out that if the US positions itself against the vast majority of countries that uphold free trade and support the multilateral trading system, the ultimate outcome will not be “economic deglobalisation”, but rather, “de-Americanisation of the world”.
Since the dawn of the 21st century, the rise of developing countries has been the most striking feature of the evolving international landscape. Take BRICS as an example: Its member states now account for nearly half of the global population and one-fifth of world trade. Their contribution to global economic growth exceeds 50 per cent, approximately double that of the G7. In terms of purchasing power parity, the total economic output of BRICS has already surpassed that of the G7.
China’s development is a result of self-reliance and hard work, not favours from others. China does not flinch from any unjust suppression. China’s resolute countermeasures against the US tariff bullying are not only to safeguard its own legitimate rights and interests but also to uphold the free trade system and protect the shared interests of the international community. It was precisely because China took the lead in standing up to it that the US was forced to announce a 90-day pause for other countries. Now, the ball is in America’s court. China’s position is clear: There are no winners in a tariff war or a trade war. If a negotiated solution is truly what the US wants, it should seek dialogue based on equality, respect and mutual benefit. If the US insists on continuing the fight, China will fight to the end with firm will and abundant means.
As major developing countries and emerging economies, China and India share the common goal of development and revitalisation. China is actively promoting high-quality development, while India is committed to realising the vision of “Viksit Bharat 2047”. As the only two nations with populations exceeding one billion, the convergence of the Chinese and Indian markets could generate a synergistic “1+1=11” multiplier effect. The IMF predicts that over the next five years, China and India together will contribute 36 per cent to global economic growth — more than all G7 countries combined. China is implementing a strategy to expand domestic demand and a special initiative to boost consumption, which will unleash enormous consumption potential. We welcome more high-quality Indian products to the Chinese market. China strictly complies with WTO subsidy disciplines and market rules. We will not engage in market dumping or cutthroat competition, nor will we disrupt other countries’ industries and economic development.
The tariff and trade war has once again placed the world at a crossroads. At this pivotal historical juncture, let us jointly uphold multilateralism, safeguard the international rules-based order as well as the development rights and interests of the Global South, and inject much-needed stability into a turbulent world.
The writer is China’s ambassador to India
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