Beijing says it wants to support the multilateral trading system, "because it has benefited quite a bit from it", WTO chief Ngozi Okonjo-Iweala told the Munich Security Conference.
However, "the export-led growth model that drove China's growth for the past 40 years cannot drive China's growth for the next 40," said Okonjo-Iweala.
"And the US$1.2 trillion trade surplus is not sustainable. Because the rest of the world cannot absorb it," she added.
"And if China does not act, we will see more barriers." CNA
China's trade surplus is wrong, unacceptable, unsustainable? Who said so? WTO. Who is WTO or who is behind this accusation? Why is this unacceptable? What is your problem, WTO? What amount is acceptable? I am not even asking about sustainable. That is a completely different issue.
China is trading with the whole world under WTO rules. China did not point a gun at anyone to buy Chinese goods. China's trade with the world is on a willing buyer and willing seller basis. Why is this a problem? Because the Americans and the Europeans are unhappy? They have been chalking billions and trillions of trade surpluses over the centuries, nobody said it is unacceptable or that it is a problem. China cannot make trade surpluses fairly?
As for sustainability, the buyers of Chinese goods will buy whatever they need and whatever they can afford. They will not buy just because China is having a trade surplus. When China is producing goods that are needed, in demand, at very fair and affordable prices, these are not crimes. The trade surpluses will adjust accordingly in a free trade system, in a free capitalist economic system of demand and supply. Buying Chinese goods and services is value for money. Why pay an arm or leg of AI when you can get it for practically free?
Countries that think they are being cheated for buying Chinese products can go and buy American or European products. No one is stopping them from doing so. Or they can follow the Americans, imposed high tariffs on Chinese products, to make Chinese products more expensive for their people, don't buy, don't use Chinese products. It is as simple as that.
When China is still making profits from the world, the US$1.2 trillion is an aggregate, not from exploiting any particular country, by selling very good quality products at very low prices, at very low profit margin, China is as good as doing charity, doing public service, by offering the best products to the world at prices they can afford, improving the quality of life of the people of the world. What is the alternative, don't make and don't sell, or sell at American and European prices with exorbitant profits, like a $50,000 Birkin Bag instead of paying $3,000?
Are the people from developing countries complaining? Or are they very grateful that China is offering good products within their limited budget, to enjoy some of the finest things in life eg, mobile phones, clothings, that they would otherwise missed? Why pay for a $100k car when one can get a Chinese car of same quality or better for $10k? China can sell its good and affordable products to whoever that wants them, no need to sell to those that do not want them. Period. The majority of the people of world are benefiting and very grateful for China's goods and services. All manufacturers should compete with China to make better products and sell at competitive prices, not fleecing their consumers and users.
Trump is right. Useless organisations like the UN, WTO, WHO etc that are doing silly things should all be closed down. They are led by mischievous leaders with vested agenda or by unthinking leaders led by mischievous people to do their bidding.
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