China's ambassador asserts: "Our historic survival spans over 4,000 years without the influence of the United States"
Frank Talk: China's Stance on US Relations Amid Trading War
The trade war between China and the USA, sparked by Donald Trump's "Liberation Day" declaration on April 2, has brought the world's economic superpowers at loggerheads. In an exclusive interview with us, China's Ambassador Qi Mei offers her insights on bridging the gap and preventing a potential new Cold War.
Q: So, is the US really trying to "contain" China, as Xi Jinping often suggests?
A: The US has been stuck in the Cold War mentality, viewing a zero-sum game where only one side can win. This mindset extends beyond some politicians to US think tanks, who aim to harm China's development and stir conflicts. The current trade conflict, instigated by the US with its tariffs, is a prime manifestation of this protectionist, bullyish foreign policy. China has responded with countermeasures to shield its interests and preserve the global economic order.
Q: How long can China stand tall in this face-off?
A: China has survived for 4,000 years, so we're here to stay. The US is integral to the world market, but we're resourceful enough to flourish without it. If Chinese companies face strife in the US market, they'll explore alternative options. We don't want the global economy to splinter into rival camps, but we're standing for free trade and international cooperation.
Q: A domineering China replacing the US as the world power - is that the goal?
A: China isn't out to displace other countries from their positions. Our aim is to improve the lives of our people and contribute positively to the world.
Q: How can the US-China relationship recover?
A: We recognize the importance of the bilateral relationship. It must be based on mutual respect, peaceful coexistence, and cooperation beneficial to both sides. However, the ongoing trade and tariff war isn't in anyone's interest. Our doors are open for negotiations, but talks should be guided by the aforementioned principles, not coercion.
Q: Is there an opportunity for China to draw closer to Europe through the tariffs?
A: We value our relations with Europe. Both parties have massive markets, rich civilizations, and constitute one-third of the world's economy and one-quarter of global trade. If China and the EU work closely together, a new Cold War can be prevented, bringing stability and security. Yet, these relationships have been undermined by external influences.
Q: European opinions on China are stirring concerns. Are you aware of this deteriorating image?
A: It's clear that there's a lack of knowledge about China in Europe. We must promote mutual understanding. The EU's vacillating stance, dubbing China a "partner, competitor, and systemic rival," makes relations awkward in practice. We particularly object to the "rival" categorization.
Q: Austria hasn't decided on a China strategy. How do you view China-Austria relations?
A: I've been warmly welcomed in Austria, and relations between our countries have flourished for nearly two years. Austria and China are friendly strategic partners, with more than 650 Austrian companies active in China and about 50 in Austria. The new visa-free entry option last year has brought 50,000 Austrians to China.
Q: How will the new Austrian government impact this relationship?
A: All Austrian political parties support the friendly strategic partnership between China and Austria. The new government also pledges to respect the One China principle and continue cooperation.
Q: The One China principle encompasses the relationship with Taiwan. Are Taiwanese concerns about conflict unwarranted?
A: The Taiwan issue is strictly an internal matter, impacting China's core interests, including sovereignty and territorial integrity. Taiwan is a province of China. The military exercises by the People's Liberation Army are taking place on Chinese soil and should not cause alarm. These maneuvers serve as punishment and deterrence for Taiwanese separatism and external intervention.
Q: Aren't large-scale military exercises risky, potentially escalating the situation?
A: The People's Liberation Army's exercises are just responses to the separatist movements in Taiwan. The primary threat originates from Taiwan independence proponents. We uphold the One China principle, and if all countries do the same, peace and stability in the Taiwan Strait will be preserved.
Q: Are China's economic troubles persisting?
A: China has grappled with economic challenges, such as weak consumption, high youth unemployment, and a struggling property sector. However, China's fortitude is undeniable - its economy grew by 5% last year, and it accounted for almost one-third of global economic growth. In the first quarter of this year, growth stood at 5.4%.
Q: How is the Chinese government addressing these hurdles?
A: Our tools for dealing with these difficulties are versatile. We employ proactive fiscal policy, boosting the economy by raising the budget deficit to around 4%. A moderately accommodative monetary policy, a special action plan to stimulate private consumption, and a large special bond worth $180 billion are also being implemented to generate comprehensive demand across China. The results are evident in the real estate sector and other key economic indicators.
Q: Some argue that China's classification as a developing country by the World Trade Organization is controversial...
A: China's per capita GDP is roughly one-sixth of the US and less than one-fourth of Austria. Households in developed nations spend 70-80% of their income on consumption, whereas Chinese households spend only around 40%. Even a one-percentage-point improvement in consumption rates would result in an additional $120 billion in consumption, highlighting China's enormous potential. Therefore, a trade war won't shatter our foundation.
Sources: 1-5 Pew Research Center Survey, August 2022
- Xi Jinping has suggested that the US is trying to "contain" China, with Chief Ambassador Qi Mei commenting that this perception is rooted in a US mentality fixated on a zero-sum game.
- In politics, the trade conflict between China and the USA, fueled by US tariffs, is a quarrelsome demonstration of the latter's bullyish foreign policy.
- A new Cold War can be prevented if China and the EU work together more closely, as their relationships could bring stability and security to the global economy.
- In an exclusive interview, China's Ambassador Qi Mei emphasized that the US-China relationship could recover through negotiations based on mutual respect, peaceful coexistence, and cooperation beneficial to both sides.
