China’s Proposal for Cooperation with USA. Rejected

According to Chinese President Xi Jinping, Beijing “resolutely promotes high-level opening up to the outside world and creates a free market-oriented economic environment based on the rule of law and the principles of internationalization.” The Chinese leader wrote about this in an unusual letter to the US administration on the occasion of the now forgotten 50th anniversary of creating the China-US Trade Committee. From President Xi Jinping’s perspective, “China’s modernization will also benefit American companies.”

With the ongoing trade and technology war between Beijing and Washington, China’s industrial output rose 6.6% year-on-year in November, sharply accelerating from October’s 4.6% and even exceeding the 5.6% that international analysts had expected. Last month, the Chinese industry recorded its best performance since September 2022.

But the USA did not hesitate to reject the olive branch extended by President Xi Jinping. It accused Beijing of “unfair economic practices” that include “the use of non-market instruments, the erection of barriers to foreign companies from accessing Chinese markets, and, above all, the widespread use of enforcement measures against American companies.” US Treasury Secretary Janet Yellen wrote this on X social media, calling on Beijing to abandon its “unfair economic policies” that punish the Chinese economy and American businesses. “Too strong a role for public companies could stifle growth,” Yellen said.

For now, the issue of Taiwan, where crucial presidential elections are approaching, is shaping the development of economic and trade relations between China and the United States. Indirectly responding to Yellen’s criticism, China’s Ministry of Commerce accused the Taiwanese government of erecting “impenetrable barriers” to trade: Taipei has imposed import restrictions on thousands of goods from China.

The Chinese ministry has published the results of an eight-month investigation, according to which Taiwan has banned the import of 2,509 Chinese goods, from raw materials to food and other agricultural and light industry products. Beijing condemned the violation of the economic cooperation agreement between Beijing and Taipei, signed by the parties in 2010, which planned to reduce restrictions on bilateral trade as much as possible. The results of the investigation by the Chinese Ministry of Commerce did not go unnoticed by the Taiwanese Ministry of Economy. They said they were “ready to resolve disputes in accordance with the rules of the World Trade Organization.”

Finally, directly addressing the United States, the Chinese Ministry of Defense called on Washington to be “very careful” both in relations with Taiwan and in American military operations in the South China Sea. According to Chinese Defense Ministry spokesman Zang Xiaogang, “China respects the overflight and navigation rights of all countries in the South China Sea, but strongly opposes all actions that jeopardize China’s sovereignty, condemning the transit of US ships and fighter aircraft through the Taiwan Strait.” Zang Xiaogang recalled that according to Chinese law and the UN Convention on the Law of the Sea, “the strait includes China’s internal waters, territorial sea waters, the contiguous zone, and the exclusive economic zone,” but denies the existence of “international waters,” citing which the USA has repeatedly justified its right on shipping in the region.