Full Text of People's Daily Op-ed: Unwavering Commitment to Advancing High-Standard Opening-Up

One of two People's Daily commentaries published Monday

People's Daily features two commentaries in its Monday, April 7 edition, apparently a response to U.S. tariff policy. The first, authored by Xinhua, is titled “Unwavering Commitment to Advancing High-Standard Opening-Up (坚定不移推进高水平对外开放)."

The second, by the paper's own commentator, is titled "Focus on Doing Our Own Things Well and Strengthen Confidence in Effectively Responding to U.S. Tariff Impacts 集中精力办好自己的事 增强有效应对美关税冲击的信心". Bill Bishop of Sinocism has put it out in English.

Interestingly, in the newspaper's layout, the "Opening-up" commentary is placed above the "Doing Our Own Things" piece.

I've just translated the full text of the Xinhua piece, "Unwavering Commitment to Advancing High-Standard Opening-Up (坚定不移推进高水平对外开放)."

The second-to-last paragraph of this commentary outlines several key stances China holds:

China is steadfast in its commitment to defending multilateralism and is willing to work with all countries to promote free trade and achieve mutual benefits and win-win outcomes. We are committed to working with major global economies and developing countries to reform and improve the multilateral trading system and its rules, promote global trade and investment liberalization and facilitation, and actively shape a friendly international economic and trade environment.

We will intensify efforts for further opening up, treating all business entities, including foreign-invested enterprises, on an equal footing, and improving the foreign investment promotion system and mechanisms.

We will ensure that foreign-invested enterprises receive national treatment in areas such as access to production factors, license application, standards setting, and government procurement, and we will actively create a world-class business environment that is market-oriented, law-based and internationalized.

We will accelerate the expansion of a high-standard free trade zone network that is open to the world and promote diverse forms of multilateral and bilateral trade agreements, establish closer and more mutually beneficial economic and trade relations with countries, and allow trade partners to better share in the dividends of China's development.

We will make greater efforts to maintain the stability of global industrial and supply chains, guide enterprises to "go global" in an orderly manner, create more investment, employment, and industrial development opportunities for local communities, and promote global economic prosperity and stability.

Below is the full translation. All bolded text was added by me.

坚定不移推进高水平对外开放

Unwavering Commitment to Advancing High-Standard Opening-Up

Beijing, April 6 — Xinhua News Agency published a commentary on April 6, titled Unwavering Commitment to Advancing High-Standard Opening-Up. The full text is as follows:

On April 2, the United States announced the implementation of its so-called "reciprocal tariffs" plan, sparking a global trade war and causing strong reactions from the international community. This led to significant turbulence in global financial markets, including in the U.S. In response, China took immediate and resolute countermeasures, joining the international community to strongly oppose the U.S. tariff bullying and hegemonic behavior, while firmly defending multilateralism and economic globalization.

The U.S. so-called "reciprocal tariff" policy is illogical and violates basic economic principles. The U.S. approach to calculating tariffs is crude and simplistic. The so-called "reciprocal tariff" rates that the U.S. has determined for various countries (and regions) are not, as the U.S. claims, based on "the country (region)'s tariffs on the U.S. and non-tariff barriers." Instead, the U.S. simply calculates the ratio of the trade deficit the U.S. has with a country (or region) to that country's (or region's) total exports to the U.S., using this ratio—after halving it—as the basis for the "reciprocal tariff" rate. This method of calculation is overly arbitrary and lacks reasonable and legitimate justification. The U.S. aim of "zeroing out the trade deficit" is unfeasible. The large trade deficit that the U.S. faces is fundamentally the result of an imbalanced domestic economy. From the perspective of national economic accounting, whether a country has a current account surplus or deficit depends on the relationship between its savings and investment. The typical feature of the U.S. economy is low savings and high consumption, with savings consistently falling short of investment. As a result, the U.S. must rely heavily on foreign savings, which is the fundamental reason behind the formation and long-term existence of the U.S. trade deficit. This is an intrinsic, structural, and enduring phenomenon within the U.S. economy. Protectionism cannot resurrect U.S. manufacturing, and imposing tariffs will not lead to a "zero trade deficit."

The U.S. so-called "reciprocal tariffs" are a typical example of tariff bullying and violate World Trade Organization (WTO) rules. The U.S. "reciprocal tariff" approach undermines the existing international economic and trade order, placing U.S. interests above those of the global community. Its so-called "reciprocal" claim is deceptive and misleading, as it actually contradicts the WTO's Most-Favored-Nation (MFN) principle. The differentiated tariff rates violate the commitment among WTO members to avoid discrimination. This policy not only fails to address the U.S.'s own issues, such as trade deficits and industrial competitiveness, but also severely disrupts the normal international economic and trade order and the security and stability of global industrial and supply chains. Upon its announcement, the policy immediately triggered widespread criticism and opposition from the international community. European Commission President Ursula von der Leyen stated that the U.S. "reciprocal tariff" policy runs counter to its intended goals, and the EU would adopt countermeasures. The Brazilian Congress passed Trade Reciprocity Bill, authorizing the government to take action against U.S. trade barriers. Chilean President Gabriel Boric noted that the U.S. government's unilateral action disregards all principles under the WTO framework, embracing the notion that "might makes right." Australian Prime Minister Anthony Albanese criticized the U.S. tariff policy for lacking a logical basis and for undermining the foundation of the two countries' partnership. Even within the U.S., the "reciprocal tariff" policy is unpopular. The U.S. capital markets experienced sharp declines, with the major U.S. stock indices dropping more than 5% on April 4, and the CBOE Volatility Index soaring by 46% in a single day. The market is "voting with its feet," expressing strong concerns about the potential backlash from the so-called "reciprocal tariffs."

China's countermeasures are reasonable, justified, and legal, and we hope the U.S. will return to the correct track of resolving issues. In response to the U.S. so-called "reciprocal tariff" policy, China immediately implemented necessary countermeasures to firmly defend its legitimate rights and developmental interests. China's stance on the trade war is consistent and clear: China does not want a trade war because there are no winners in a trade war, but China is not afraid to engage in one. With the U.S. imposing its so-called "reciprocal tariffs," China will inevitably respond with reciprocal countermeasures. The essence of China-U.S. economic and trade relations should be mutually beneficial and win-win. It is normal for China and the U.S., as two major powers, to have some economic and trade differences. Both sides should, based on mutual respect and equality, engage in consultations to find solutions to their respective concerns, rather than resorting to unilateral measures to contain, suppress, or apply extreme pressure. We urge the U.S. to immediately correct its erroneous actions, strengthen communication and dialogue with China and relevant sides, and properly resolve economic and trade differences.

China is steadfast in its commitment to defending multilateralism and is willing to work with all countries to promote free trade and achieve mutual benefits and win-win outcomes. We are committed to working with major global economies and developing countries to reform and improve the multilateral trading system and its rules, promote global trade and investment liberalization and facilitation, and actively shape a friendly international economic and trade environment. We will intensify efforts for further opening up, treating all business entities, including foreign-invested enterprises, on an equal footing, and improving the foreign investment promotion system and mechanisms. We will ensure that foreign-invested enterprises receive national treatment in areas such as access to production factors, license application, standards setting, and government procurement, and we will actively create a world-class business environment that is market-oriented, law-based and internationalized. We will accelerate the expansion of a high-standard free trade zone network that is open to the world and promote diverse forms of multilateral and bilateral trade agreements, establish closer and more mutually beneficial economic and trade relations with countries, and allow trade partners to better share in the dividends of China's development. We will make greater efforts to maintain the stability of global industrial and supply chains, guide enterprises to "go global" in an orderly manner, create more investment, employment, and industrial development opportunities for local communities, and promote global economic prosperity and stability.

China has always been a stabilizing anchor and safe haven for the global economy and welcomes foreign-invested enterprises to invest and thrive in China. As the world's second-largest economy, China has consistently contributed around 30% to global economic growth. Whether in responding to the Asian financial crisis of the late 1990s or the 2008 global financial crisis, China has played a vital role in stabilizing the global economy. Currently, China boasts a massive market and a complete industrial system, being the world's second-largest consumer market and having the largest middle-income group. It has a solid foundation and strong resilience to respond to external risks and challenges. Furthermore, China's economy is breaking new ground, accelerating the development of a modern industrial system, developing new quality productive forces based on local conditions, and driving the high-end, digital, and green transformation of manufacturing. New technologies, new products, and new business models are emerging rapidly, continuing to make China a fertile ground for attracting foreign investment. More importantly, China maintains long-term political stability and social order, and the certainty of its policy environment contrasts sharply with the external uncertainties. The Third Plenary Session of the 20th CPC Central Committee emphasized the need to build a new economic system for a higher standard of opening up, providing a clear institutional framework for expanding high-standard opening up in the coming period. China continues to strengthen the legal and regulatory framework for opening up, effectively implementing the Foreign Investment Law, and creating a transparent, stable, and predictable policy environment for foreign investors. It is this rare and valuable certainty that has led to increasing optimism among international investors about the Chinese market and its future prospects. China welcomes enterprises from all around the world to invest and thrive here, sharing in the immense opportunities that China's market development offers.