Daily Management Review

US Trying To Invade Chinese Economic Sovereignty: Chinese State News Agency


US Trying To Invade Chinese Economic Sovereignty: Chinese State News Agency
China has reacted sharply against the call by the United States to the Chinese government to invest less in the development of its state-owned companies. China has called this US demand to be an “invasion” on its economic sovereignty, according to the Chinese state news agency Xinhua.
The ongoing trade war between the two countries increased earlier this month after China was accused by the US of going back on its earlier promises to implementing structural changes in its economic practices. Later, an increase in import tariffs from 10 per cent to 25 per cent for $200 billion worth of Chinese goods was announced by the US president Donald Trump’s administration. China retaliated by imposing tariffs on $60 billion worth of US imports into China.
Both the sides have apparently taken a staunch stance amid the stalling of trade talks. While denying that it had backtracked on promises it had made to the US earlier, China stressed that it would not yield to the US on “matters of principles” and for defense of its core interests.
According to analysts and trade groups, in addition to getting government subsidies, the state owned companies in China also get hidden benefits such as implicit government guarantees for debts and lower rates of interest from banks. The US has been demanding that granting of such benefits to the public sector companies be stopped by the Chinese government.
According to the Xinhua commentary, such demands by the United States is far more than conventional trade negotiations can entail because these issues are very fundamental for the economic system of China. The commentary further pointed out that the US making such demands shows that the demands being made by it through the trade negotiations to find a solution to the trade war is not its original plan. Instead the US wants to impound on the economic sovereignty of China with the ultimate aim of forcing China to “damage its core interests”, said the Xinhua commentary.
The publication further added that unfounded accusations against China have been made by the United States which includes the allegations that transfer of technology from foreign companies to domestic Chinese companies was made forcibly by the Chinese authorities as a precondition for foreign companies to do business in the country. The commentary in Xinhua further also alleged that this stance of the US is clear evidence that the Trump administration is “forcing China to change its development path.”