China has reaffirmed its dedication to free trade principles and compliance with World Trade Organization (WTO) rules, according to a white paper released by the State Council Information Office on Wednesday.
The white paper highlights China’s significant strides in tariff reduction. By 2010, the nation had fulfilled all of its tariff reduction commitments for goods. Over the years, China’s overall tariff level decreased from 15.3 percent in 2001 to 7.3 percent in July 2023. Furthermore, China has granted zero-tariff treatment on all tariff lines to the least developed countries that maintain diplomatic relations with it.
In a move to foster a more open economy, China has lifted all restrictions on foreign investment in the manufacturing sector and expanded access to its service industry. The country reduced the items on the national negative list for foreign investment from 93 in 2017 to 29 in 2023, demonstrating its commitment to creating a more favorable environment for overseas investors.
Since joining the WTO, the trade relationship between China and the United States has flourished. U.S. exports to China have seen rapid growth, making China a vital export market for the U.S. In 2022, U.S. goods exports to China reached $143.55 billion, a remarkable increase of 648.4 percent from $19.18 billion in 2001. This growth far exceeds the overall U.S. export growth of 183.1 percent during the same period.
Service trade between the two nations has also expanded significantly. From 2001 to 2022, U.S. service exports to China grew from $5.63 billion to $54.61 billion. The annual U.S. service trade surplus with China increased from $2.31 billion to $31.84 billion, with China contributing approximately 10.8 percent of the total U.S. service trade surplus in 2022.
The white paper emphasizes that when considering trade in goods, services, and the local sales of domestic enterprises’ branches in each country, the economic and trade benefits gained by China and the U.S. are roughly balanced. This balanced relationship underscores the mutual benefits of open trade policies and adherence to international trade rules.
