Ordinary Chinese Must Be Ready to Sacrifice for Trade War

People's Daily: 【国际锐评】抗击美国贸易战,中国有能力付出一定的代价
There is no winner in the trade war, so China and the United States have started the largest trade war in the history of human economy. Both sides will inevitably have to pay the price and bear the losses. In this regard, China has long predicted and prepared a response plan.

On the evening of the 9th, the Chinese Ministry of Commerce spokesman announced four measures to alleviate the impact of Sino-US trade frictions, including: continuous assessment of the impact of various types of enterprises; the increase in tax revenue from counter-measures is mainly used to alleviate corporate and employee The influence of enterprises; encourage enterprises to adjust the import structure; accelerate the implementation of the State Council's opinions on actively and effectively utilizing foreign capital and promoting high-quality economic development, strengthen the protection of legitimate rights and interests of enterprises, and create a better investment environment. Obviously, in order to reduce the loss of trade wars, the Chinese government is launching a combination of both the symptoms and the punishment, reflecting the strong risk control ability, the stamina and endurance against the trade war, and the "people-oriented" ruling philosophy.

As some analysts have pointed out, the US tariff on the $34 billion Chinese exports to the United States will have an impact on some of China's related companies and will have an impact on the lives of employees and ordinary people. The Chinese government has long known about these consequences, so it has been clearly stated that it "does not want to fight." However, in this trade war, the Chinese government had to fight again and had to accompany it to the end. Because people of insight have long seen that the United States has been planning a trade war for a long time, not only to obtain the so-called trade balance, but also to attack China’s high-tech innovation capability, fundamentally contain China’s development, and even want to force China. The economy carries out "structural reforms" that change China's development path.

Therefore, fighting against the US trade war is a major event for China, which is related to the core interests of the country, the future interests of the nation, and the interests of the people. To this end, China only has to pay a certain controllable cost and bear a certain marginal loss.

Of course, the loss of any interest is partial and small for China as a whole, and may have a greater impact on individuals or individual companies. Based on the people-oriented ruling philosophy, the Chinese government will inevitably find ways to keep the adverse effects to a minimum. The first two measures announced by the Ministry of Commerce of China are direct and effective responses to damaged companies and employees, which can alleviate their immediate needs. The third measure aims to encourage companies to increase imports from other countries and regions. This is a proposal from the long-term development of enterprises. Originally, diversification of trading partners can help to spread risks. The fourth proposal is to design from the perspective of improving the quality of economic development and protecting the soft environment of enterprise development, to hedge the negative impact of the Sino-US trade war and enhance the cohesiveness of the Chinese market. It is noted that the China Securities Regulatory Commission announced on the 8th that it will further liberalize foreigners to open A-share accounts. This is an orderly promotion of capital market opening in accordance with the established direction and plan. A high-quality development of the capital market is naturally a strong support against the US trade war.

As the Sino-US trade war has just begun, there will be many variables in the future, and the impact will be dynamically changed. China's response plan must also be adjusted at any time. In response, the Ministry of Commerce of the People's Republic of China stated that it will continue to improve its policy mix and welcome comments from various sectors of the community. It can be expected that as the Sino-US trade war progresses, the Chinese government's stop-loss plan will continue to adjust and optimize, and strive to minimize losses.

In the fight against the US trade, is China really capable of paying a certain price? People have seen that China is the only country in the world with a full industrial category, with a huge consumer market of nearly 1.4 billion people. This means that even in the most difficult times, the Chinese economy can achieve internal circulation. At the same time, 91% of China's economic growth comes from domestic demand, and 60% of domestic demand is driven by consumption, and this consumer demand is constantly upgrading and the market is full of vitality. More importantly, the number of innovative enterprises in China ranks second in the world, and innovation-driven development has made China's economy more resilient. In addition, China has consistently expanded its openness in accordance with its established strategy, greatly enhancing the confidence of the outside world. According to the latest report of the 2018 China Business Environment Survey released by the American Chamber of Commerce in China, 74% of member companies plan to expand investment in China this year, the highest rate in recent years.

Fighting the US trade war is a "national war" for China. China has more than 5,000 years of history and culture. The Chinese people's blood is not only the heroic feelings of "the worries of the world, but also the happiness of the world." It also contains the civilian spirit of "small family and everyone." In the face of this "national war", the Chinese know that "there is a country with a family", and therefore are willing to bear the temporary loss of personal life, and share a common hardship with a responsible government, to maintain the economic sustainable development. And the long-term overall situation of national rejuvenation. This is the strongest strength of China's fight against the US trade war!

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