08.06.2019
The trade war with China was unleashed by the” number one power ” – the United States, which certainly puts pressure on the Chinese economy, but its influence and the damage caused are limited. China will not be crushed. In this regard, we have enough confidence, strength, and all the necessary resources. As Chinese President Xi Jinping noted, the Chinese economy is a sea, not a small pond, storms can turn the pond upside down, but not the sea, after countless hurricanes it will remain in the same place.
The strength of the Chinese economy comes from the victories achieved over 40 years of reforms and openness, as well as the vast space of the world’s largest market and large demographic dividends. China has more than 1.3 billion people, 900 million labor resources, 170 million people with higher education or professional skills, more than 100 million market objects, including many small and medium-sized enterprises. The Chinese economy has a vast market and strategic depth, which other countries cannot boast of.
The strength of the Chinese economy comes from the steady and growing dynamics of domestic demand, as well as from the ongoing effective reforms and innovations being introduced. Domestic demand is the main driver of China’s economy. In the first quarter of this year, the share of the contribution from the growth of domestic consumption to China’s economic growth reached 65.1%, which was significantly higher than the share of the contribution of investment, exports of goods and services. At the same time, innovations are taking the Chinese economy to a new stage – the stage of improving quality and efficiency. For the first quarter of this year China’s GDP grew by 6.4%, maintaining a leading position among the world’s major economies. High-tech production and high-tech services increased by 11.4% and 19.3%, respectively, compared to the same period last year, taking a shock start.
The strength of the Chinese economy comes from the fact that it keeps up with the times, actively adapting to the trends of economic globalization. China is fully open, has trading partners all over the world, and is independent of a particular country or region. At the end of April this year, the Second Forum of International Cooperation “One Belt, One Road” was successfully held in Beijing, it was attended by more than 6,000 representatives from 150 countries and 92 international organizations, including more than 50 representatives of the United States. This has become a kind of trust and support from the international community for the principle of “joint discussion, joint construction, joint use” initiated by China in the interests of promoting global cooperation.
The strength of the Chinese economy comes from the strong and loyal leadership of the Central Committee of the Communist Party of China, the core of which is Mr. Xi Jinping. Today, an unprecedented consolidation reigns in Chinese society. Our people are full of confidence in their own chosen path of development, which fully corresponds to the Chinese specifics. Thanks to Xi Jinping’s ideas about a new era of socialism with Chinese specifics, we will adequately respond to various challenges and risks, going our own way, and fulfill the tasks set.
In fact, compared to China, the United States should worry about itself. As you know, today, whoever owns the market has a future, and whoever loses the market will lose the future. By unleashing a trade war against China, the United States may gain short-term benefits by resolving some internal contradictions, but only at the cost of losing the huge Chinese market. Ultimately, American consumers, farmers and businesses will suffer the most. Since last year, the US economy has lost $ 7.8 billion due to the conflict in foreign trade. If the trade war with China continues, America will lose about $ 68.8 billion a year and cut 934,000 jobs. In April of this year, the National Association of Business Economics of the United States conducted a study of the business environment in the country, which showed that three-quarters of the surveyed American companies were negatively affected by recently imposed customs duties, their costs increased, and half of them increased consumer prices. We can say that America is trying to “make its country great again” through a trade war, but this is likely to remain a pipe dream.
At the same time, we also understand that in the conditions of economic globalization, the trade war does not spare anyone, i.e. there is no so-called “outsider”. Not so long ago, during her participation in the 12th Astana International Economic Forum, Managing Director of the International Monetary Fund Christine Lagarde compared the current state of the world economy with the sun and clouds, calling the trade problem “the biggest uncertainty in the world”. This was confirmed by the statistics of the World Trade Organization (WTO), which lowered the forecasts for world trade growth in 2019 from 3.7% to 2.6%, which is the lowest indicator in the last three years. It follows from the above that the United States, provoking a trade war in order to achieve the “priority of the United States”, will harm the interests of not only China, but also other countries, snatching a large piece from the common pie.
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