The US government is currently wielding the baton of tariffs and initiated a series of trade sanctions. It has drawn great attention from the international community and triggered widespread discussion in Israel. The US has imposed tariffs on imports from Mexico, Canada, and China under the pretext of fentanyl and illegal immigration, and this action will end up hurting all parties, including the US itself.
It severely violates the WTO rules, disrupts the security and stability of global industrial and supply chains, drags down global economic growth, and causes serious damage to the US economy. China upholds the multilateral trading system, promotes universally beneficial and inclusive economic globalization, and firmly advances high-level opening-up. China is ready to work with Israel and move forward together on the right path toward mutual benefit and win-win cooperation.
The US believes it has suffered losses in international trade and seeks to raise tariffs on all trading partners in the name of the so-called “reciprocal tariffs.” This approach violates the WTO members’ commitment to non-discrimination, overturns the common practice of negotiation and taxation stipulated by the General Agreement on Tariffs and Trade (GATT), and disrupts international trade.
After World War II, the US promoted globalization through the WTO as well as multilateral and bilateral trade mechanisms, reaping substantial benefits from international trade. However, today, the US is leading the charge in undermining the multilateral trading system. This approach of cherry-picking is not welcomed by the world. The “reciprocal tariffs” will also make all other economies around the world suffer and make the trade preferences of the US to certain African countries meaningless.
The scrutiny of value-added taxes due to the “reciprocal tariffs” policy will significantly reduce the input of fiscal funds of European countries and impact Europe’s economy. Such a move by the US will also inject a dose of poison into global trade by dragging down global economic growth. According to the World Bank’s predictions, due to the US tariff hikes, global economic growth is likely to decline by 0.3% in 2025.
China is one of the countries with the strictest and most thoroughly enforced anti-drug policies in the world. Imposing tariffs on China under the pretext of fentanyl is purely shifting blame and will not help the US solve its domestic problem of fentanyl abuse.
In fact, the new round of tariffs will increase the burden on American society by forcing American companies to raise product prices, accept lower profits, and consequently cut wages or even lay off workers. American consumers will ultimately bear the brunt.
Tariff hikes will also increase manufacturing costs in the US, damaging its prospects for industrial development. Analysis by PIMCO suggests that tariffs on Canada, Mexico, and China alone could raise the inflation rate of the US by approximately 0.8 percentage points and reduce its economic growth by around 1.2 percentage points in the first year after the tariff hike.
Supporting the multilateral trading system
China is a staunch supporter of the multilateral trading system and strongly opposes the unilateral imposition of tariffs by the US. China does not want a trade war. However, if the US insists on starting one, China will resolutely defend its legitimate rights and interests. Faced with rising global economic uncertainties, China, as a responsible country, is firmly committed to high-quality development and high-standard opening-up.
It is ready to act as the “anchor of stability” and “a driving force” in the world economy. China has hosted various international trade fairs for many years in a row, such as the China International Import Expo and the Supply Chain Expo. We have also applied zero-tariff to 100% of taxable goods from 43 least developed countries, eliminated all restrictions on foreign investment in the manufacturing sector, and signed 23 Free Trade Agreements with 30 countries and regions. China’s openness index has increased by 11.89% compared with the level of 2008.
China and Israel enjoy deeply rooted friendship, complementary advantages, and mutual benefits. The bilateral relations boast rich diversity and sufficient resilience. The strong industrial capabilities and enormous market of China and the advanced technology and innovative capabilities of Israel complement each other, creating powerful internal driving force. Israel is welcome to board the express train of China’s development and share the opportunities of its opening-up.
As Chinese ambassador to Israel, I would like to work with friends from all sectors – political, business, and academic – to advance practical cooperation between China and Israel in various fields. Let’s work together to accelerate the resumption of bilateral FTA negotiations, promote dialogues on coordination of product standards, and embark on a path toward mutual benefit and win-win practical cooperation in trade and economic sectors.
To conclude, I would like to emphasize that the practical cooperation between China and Israel is based on the principle of mutual benefit. Our cooperation does not target any third party and shall be free from interference or coercion by any third party. In spite of changes in the international landscape, the key to China-Israel friendship should remain firmly in our own hands.
The writer is China’s ambassador to Israel.