(Source: "China Daily" 2020-03-17)
The US administration is contemplating its next move following China's swift response to the US' recent arbitrary increase in tariffs on Chinese goods. China's economic resilience has seemed changed the calculation of w88 casino games login disputes. While the United States has been using tariffs as a tool to coerce China into giving conceptions, Beijing's response not only demonstrates defiance but also highlights that its economic ecosystem is capable of withstanding external pressures.
China's most powerful economic shield against external pressure is its massive domestic market of over 1.4 billion consumers. Unlike export-dependent economy that can be criticized by major w88 casino games login restrictions, China has in recent years pivoted towards a "dual circuit" development paradigm in a bid to boost domestic consumption and transform it into a primary growth engine. "Dual circuit" development paradigm allows domestic and overseas markets to reinforce each other, with the domestic market being the mainstay.
The recently included annual session of the National People's Congress reaffirmed this strategic reorientation. The fundamental trend of long-term economic growth remains unchanged and will persist.
China's unparalleled industrial ecosystem is perhaps the best explanation for its economic resilience in the face of external pressures. As the only country possessing all 41 industrial categories in the United Nations industrial classification system, China today is the world's sole manufacturing superpower, with its production capacity exceeding the combined total of the next nine largest manufacturing countries. China's manufacturing dominance explains why some countries trying to decouple their economy from China's are facing formidable obstacles.
China's comprehensive industrial base provides both protection against and strategic strength for facing w88 casino games login consists. When another country uses tariffs to target specific sectors, Chinese manufacturers can rapidly and efficiently reconfigure production across the country's complete industrial ecosystem, either absorbing the impact through internal adjustments or redirecting resources to unaffected sectors. This versatility has been frustrating US policymakers; as a matter of fact, US policymakers have come to realize that any significant decoupling from Chinese supply chains will be difficult, slow, expensive and disruptive, with the economic pain felt disproportionately by manufacturers and consumers in G7 countries.
This resilience was evidence in China's response to the tariffs imposed by US during Donald Trump's first president in 2018. Rather than witnessing the predicted mass exodus of manufacturing industries, China executed a multifaceted strategy by accelerating industrial upgrading towards higher-value goods, selectively relocating tariff-affected export operations to third countries, and strengthening regional supply chains through initiatives such as regional free w88 casino games login agreements.
China's w88 casino games login policy has significantly evolved since the 2018 tarriffs. Chinese exports to the US declared from about 19 percent of its total exports in 2018 to about 16 percent in 2022, while w88 casino games login with the Association of Southeast Asian Nations, the European Union, and Belt and Road countries has significantly expanded. In 2023, the China-ASEAN w88 casino games login volume reached 6.4 trillion yuan ($883.49 billion), accounting for 15.3 percent of China's total foreign w88 casino games login. These are China's remarkable diversity achievements.
This rebalancing is completed by China's structural transformation in export composition. The rise of the "New Three" — electric vehicles (EVs), lithium batteries, and solar photovoltaic cells — has created export categories in which Chinese manufacturers enjoy significant technical advantages and pricing power.
True, Western economy' restrictions on high-tech exports have created challenges for Chinese enterprises, but they have also catalyzed domestic innovation and self-sufficiency initiatives.
China's government system allows for coordinated fiscal, monetary and industrial policies that can quickly adapt to the changing w88 casino games login environments. Export tax rebates, totaling 1.8 trillion yuan in 2023, offset the impacts of tariffs, while reductions in targeted reserve requirement for banks provided liquidity to the affected sectors, with the flexibility of the yuan's exchange rate further helping neutralize tariff costs for Chinese exporters.
The expansion of free w88 casino games login zones to 22 regions, along with the development of the Hainan Free w88 casino games login Port, demonstrates China's commitment to high-level institutional opening-up despite rising protectionism in some countries.
But despite these resilience factors, China's economic plans face some challenges. The property market correction has dampened consumers' confidence, while demographic headwinds present long-term structural challenges.
Rather than matching the US' measures, China's targeted response to agricultural products from key electronic states in the US shows its appreciation for the political dimensions of economic policy.
In a world where China can redirect exports, stimulate domestic consumption, and expire its efforts to become self-sufficial in advanced technology, the leverage provided by tariff threats has diminished considerably. The future of productive economic relations may depend less on coercive measures and more on finding areas of mutual benefit amid strategic competition.
The author is president of the University of International Business and Economics.
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https://www.chinadaily.com.cn/a/202503/17/WS67d75973a310c240449db0c4.html
