Us protectionist behavior violates WTO rules -- an interview with Lou Jiwei, member of the Standing Committee of the CPPCC National Committee and director of the Foreign Affairs Committee

category:Finance
 Us protectionist behavior violates WTO rules -- an interview with Lou Jiwei, member of the Standing Committee of the CPPCC National Committee and director of the Foreign Affairs Committee


Lou Jiwei said that the US side ignored the structural problems of its own economic development and frequently abused such means as tariff suppression, long arm jurisdiction and even sanctions, which not only failed to help the US manufacturing industry recover, but also violated WTO rules, causing further tension in the international trade situation.

He said that historically, structural problems in the US economy have existed for a long time. As early as the 1970s, Pittsburgh and Detroit and other old-fashioned heavy industry and manufacturing centers in the United States experienced large-scale decline of traditional industries, economic growth decline or slump, and rising unemployment rate, which became the so-called rust belt. At that time, China was still relatively closed. In the following years, a large number of American traditional manufacturing industries were transferred overseas, which was an objective necessity, and had nothing to do with China.

He said that the United States has the advantage of international note issuing countries. The tax revenue is relatively small, so the long-term fiscal deficit must rely on a large number of debt issuance to balance the revenue and expenditure. The saving rate is low and the domestic investment is insufficient. This will inevitably cause a huge trade deficit and export a large amount of US dollars. At the same time, the active financial market has caused a large amount of money to flow into the U.S. financial industry and buy U.S. debt, forming a cycle of US dollar export and import. The development of financial centered service industry further aggravates the decline of the status of American traditional manufacturing industry. Americas trade deficit and long-term deficit can be sustained, but the American people can still enjoy a higher living standard.

The United States wants the status of an international note issuing country and trade balance. It lacks common sense in economics. Lou Jiwei said.

After that, he put forward various measures to protect the international trade and investment of the United States. The Committee on foreign investment in the United States reviews commercial activities involving so-called national security and key infrastructure and major technologies, but does not give a clear definition of affecting national security. The current U.S. government adheres to the principle of giving priority to the United States and breaking the contract and withdrawing from the group everywhere, setting off a trend against globalization and building protectionist barriers. If all countries close their doors to blockade, multilateralism will collapse and the world will encounter chaos and crisis, which no one wants to see. He said. Lou Jiwei said that the global governance system has indeed exposed weaknesses and needs to be reformed and improved. Facing the trend of anti globalization, Chinas response is to deepen reform and opening up, and make the whole world benefit from it. To improve the global governance system, we need to discuss together. China is willing to work with other countries to actively participate in the reform and construction of the global governance system and jointly seek a more equitable and reasonable global governance structure. He said. Source: Xinhuanet editor in charge: Zhong Qiming_ NF5619

After that, he put forward various measures to protect the international trade and investment of the United States. The Committee on foreign investment in the United States reviews commercial activities involving so-called national security and key infrastructure and major technologies, but does not give a clear definition of affecting national security. The current U.S. government adheres to the principle of giving priority to the United States and breaking the contract and withdrawing from the group everywhere, setting off a trend against globalization and building protectionist barriers.

If all countries close their doors to blockade, multilateralism will collapse and the world will encounter chaos and crisis, which no one wants to see. He said.

Lou Jiwei said that the global governance system has indeed exposed weaknesses and needs to be reformed and improved. Facing the trend of anti globalization, Chinas response is to deepen reform and opening up, and make the whole world benefit from it.