Li Wo Wall: China and the United States reach the trade agreement, Lu Yaoyao

Author: Lee Wo Wall

The 12th round of Sino -US economic and trade consultations appeared in Shanghai.Earlier, Trump talked again and instructed the US trade representative Leitchizawa to put pressure on WTO. It was not tolerated that 10 countries such as China (including Hong Kong and Macau) were still self -developed with developed countries and continued to enjoy special treatment in WTO.Trump again refers to China's motivation?Can the US -China restore trade negotiations be satisfactory?

There are no rigorous and consistent objective standards for the global identification of developing countries or developed countries.Development countries refer to countries with low levels of economic and social development; the general characteristics of developing countries have a high human development index, per capita national income, industrialization level, and quality of life.In accordance with this view, although China is developed, the per capita level is only close to 10,000 US dollars. Compared with developed countries such as Europe, the United States, and Japan, it is far from each other. It is reasonable to think that developing countries should be reasonable.

Currently under the WTO architecture, nearly two -thirds of the country enjoys the status of developed countries. When conducting trade negotiations, special and differential treatment can be enjoyed.The conditions are better than the developed countries.The seemingly unfair norm of WTO, its originally aimed at solving the problem of asymmetric economic force in the trade system, and can obtain effective equality and substantial fairness when the inclusive system is involved in international trade.However, due to the self -determination of the country's development level, many countries that have developed national standards are unwilling to upgrade, so as to enjoy privileges.

In the process of the development of the Sino -US trade, China was in order to protect the domestic market and implemented many trade restrictions on imported products. It was canceled some restrictions after joining the WTO in 2001, but there are still some trade barriers and corporate subsidies.For a long time, it has been criticized by Western countries and is one of the main disputes of the Sino -US trade war.

Trump has repeatedly threatened after taking office. If the WTO reform has not made progress and treats the United States more fairly, he will withdraw.At the beginning of the year, the United States submitted a document entitled "A Vitas of the Development Status System of Self -identified Development position threats" to the WTO; soon, the Prime Minister's Council decided to decide the draft of the Prime Minister's Council, requiring to cancel a large number of national members of the developed countries.Enjoy the right to special and differential treatment.Today, Trump is just a heavy tone.In addition, senior trading officials from 12 countries and EU, including Japan, vowed to promote the reform of the WTO rules after the conference disciplinary at the end of last year.

On the one hand, Trump wants to put pressure on the WTO reform, and on the other hand, he has forced China to carry out structural reforms through trade negotiations. In fact, he wants to suppress China's rise.However, Trump believes that China should be a developed country, but does not recognize the status of the Chinese market economy status.

Trump's calculation is based on the position of China and the United States. If it gives the Chinese market economy status, it will give more advantages of Chinese products, causing product trade unfairness.In particular, 10%of the negotiations have not yet been completed, including structural reforms such as smart property rights protection and canceling subsidies for state -owned enterprises, it is really difficult, but it is also the part that Trump cares most.Because as long as China is forced to carry out the above -mentioned structural reforms, Trump has become a big winner, not only won the support of voters, but also effectively curb the rise of China.However, Trump danced swords, ranging from branches.

(The author is a professor at the Department of Finance and Finance of Tamkang University and deputy director of the Cross -Strait Financial Research Center)