"'Severe Trade Deficit' Claim by Trump is Wrong"… China Publishes White Paper to Refute

"China-US Economic and Trade Exchanges Are Balanced"

China has responded to the US's 104% additional tariff measures by asserting that the trade imbalance between the US and China does not exist.

On the 9th, according to major media including the state-run Xinhua News Agency, the Chinese State Council released a white paper titled "China's Position on Several Issues Concerning China-US Economic and Trade Relations."

The white paper is composed of six chapters: ▲ China-US economic and trade relations are essentially mutually beneficial ▲ China has earnestly implemented the China-US Phase One trade agreement ▲ The US has violated its obligations under the China-US Phase One trade agreement ▲ China practices the ideology of free trade and complies with World Trade Organization (WTO) rules ▲ Unilateralism and protectionism harm the development of bilateral trade relations ▲ China and the US can resolve trade differences through equal dialogue and mutually beneficial cooperation.

The Chinese Ministry of Commerce stated in its position accompanying the white paper that "the trade gap in goods between China and the US is an inevitable result of structural problems in the US economy and is determined by the comparative advantages of both countries and the structure of international division of labor," adding, "China never deliberately seeks a (goods trade) surplus." Furthermore, it added, "Considering comprehensively the three factors of goods trade, services trade, and sales revenue of branches of companies located in the counterpart country, the economic and trade exchanges between China and the US are generally balanced."

Previously, US President Donald Trump, who decided to impose a 34% reciprocal tariff on China, warned that he would apply an additional 50% tariff after China announced 'retaliatory tariffs' at the same rate, and he implemented this.

On the 8th (local time), President Trump said via social media (SNS), "China also wants an agreement," and "We are waiting for their call."

Meanwhile, economists have forecasted that due to tariffs initiated by Trump, China's economic growth rate this year will drop by 1 to 2 percentage points.