How Beijing is spinning the trade war domestically
State Council positions itself as the champion of free trade.
The Chinese cabinet just released a special white paper on the rapidly escalating trade war between Beijing and Washington.
It spells out China’s official stance on the matter, and provides a benchmark for how the central government is spinning the conflict for a domestic audience.
Beijing touts the benefits of free trade
On 9 April, the State Council’s media office released the “Chinese Stance on Several Issues in Relation to Sino-US Economic and Trade Relations” (关于中美经贸关系若干问题的中方立场).
The white paper seeks to “clarify the facts of Sino-US economic and trade relations, and fully explain China’s policy stance on related matters.”
The State Council’s emphatic stance is that free trade is essential to the world’s economic well-being.
“Intrinsic nature of the economic and trade relationship between China and the United States is one of mutual benefit and joint victory.
“Trade wars have no winners, and there is no escape route for protectionism.”
The State Council highlighted the economic blessings brought to China by trade with other nations - and with the US in particular.
The white paper pointed to the critical role of Sino-US trade relations to China’s economic development since the start of the reform era at the end of the 1970s.
“China and the US established official relations 46 years ago, and the bilateral economic and trade relationship has continually developed,” it said.
“The volume of trade between China and the US, has leapt from less than USD$2.5 billion in 1979 to nearly $688.3 billion in 2024.”
China depicts itself as the champion of free trade
While touting the benefits of free trade for all parties, Beijing also accused the US of acting in bad faith during trade negotiations.
“China earnestly implemented phase one of the economic and trade agreement between China and the US - the US breached its relevant duties.”
The State Council considers 2018 - the second year of President Trump’s first term in office - to be the turning point for Sino-US relations and the start of the trade war.
“In recent years, US unilateralism and protectionism have reared their heads, severely disrupting regular economic and trade relations between China and the US,” the white paper said.
“Since economic and trade frictions between China and the US in 2018, the US has applied high tariffs of over $500 billion to Chinese exports, and continually unveiled policies to put pressure on China.
“China is left with no choice but to adopt vigorous response measures and defend its national interests.”
In sharp contrast to the US, the State Council portrays China as a champion of mutually advantageous free trade.
The white paper is adamant that China is “implementing the concept of free trade, and earnestly abiding by the rules of the World Trade Organisation.”
Beijing says it wants negotiate
While claiming the moral high ground in its trade disputes with Washington, the State Council also struck a highly conciliatory tone in the white paper.
“As two great nations at different stages of development with different economic systems, it’s normal for China and the US to have disputes and frictions in trade relations,” it said.
“The key is to respect each other’s core mutual interests and main concerns, and use dialogue to find methods to appropriately solve problems."
The State Council emphatically stressed its openness to negotiation with the US, and finding an expeditious solution to any trade disputes via dialogue.
“China has always maintained the basic stance of using dialogue to negotiate and resolve disputes,” it said.
“China and the US can use equal dialogue and mutually beneficial cooperation to resolve economic and trade differences.
“[We] hope that the US and China can head in the same direction, and negotiate and resolve our respective concerns in accordance with the principles of mutual respect peaceful co-existence, cooperation and joint victory.”