MOFCOM refutes allegation that China is a “non-market-oriented” economy

The U.S. labeling China as "non-market-oriented" lacks any basis in international economic or trade rules, and it is completely inconsistent with the facts, Chinese Ministry of Commerce (MOFCOM) Spokesperson Gao Feng said. The statement was made in response to the Office of the U.S. Trade Representative (USTR) labeling China as state-led, with non-market policies and practices, while threatening to pursue new strategies and update its domestic trade tools to deal with China. “China has not moved to embrace the market-oriented principles on which the WTO and its rules are based, despite the representations that it made when it joined 20 years ago. China has instead retained and expanded its state-led, non-market approach to the economy and trade,” USTR Katherine Tai said. She made the remarks after her office released its annual assessment on China’s compliance with WTO rules.

In addressing the USTR's irresponsible remarks, Gao Feng said that “the U.S. should make its trade tools conform to WTO rules as a member state, rather than adopting a different set of practices, in pursuing unilateralism, protectionism and bullying.” The USTR's remarks about pursuing new strategies and updating its domestic trade tools in dealing with China serve as another indication that the tariffs imposed on Chinese goods have proved to be a total failure in gaining an edge against China and are a damaging tool that hurts U.S. companies and consumers as well as normal trade activities between the two major economies, experts said. Gao Lingyun, Expert at the Chinese Academy of Social Sciences (CASS) in Beijing, told the Global Times that “the message of the USTR's statement is a reflection that the tariff tool is not working and they want to cancel the tariffs, but there are no new measures yet for follow up.” The U.S. tariffs on Chinese goods have added to the U.S.' costs and eventually led U.S. consumers to pay the bill imposed by their own government.

“The U.S. will realize that any attempt to increase its pressure on China will ultimately hurt its own interests,” Gao Lingyun said, noting that China maintains an open attitude and hopes that the U.S. will respond correspondingly. “Many of the U.S. tactics are not aimed at solving the trade issue but at suppressing China and Chinese companies,” Bai Ming, Deputy Director of the International Market Research Institute at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times. “The U.S. should look in the mirror when talking about breaking WTO rules, because that is what they have been doing,” Bai said.