China stated on Wednesday that while trade talks with the U.S. are a vital step toward narrowing differences, the real solution to global trade turmoil lies in embracing “indispensable” multilateralism.
“While bilateral talks may sometimes work, China believes multilateralism is the inevitable and ultimate choice to address global challenges,” the Chinese delegation at the World Trade Organization (WTO) said in a statement at a two-day meeting of the WTO’s General Council in Geneva.
“We need to find the way out,” it added.
Trump’s Reciprocal Tariffs
China and dozens of other countries were stung by a slew of so-called reciprocal tariffs announced by U.S. President Donald Trump in April, before talks were held between the two major commercial partners on May 12 to ease tensions over trade imbalances.
China and the United States announced a trade truce, with the U.S. dropping the extra tariffs it imposed on China to 30% from 145%, while China cut its levies to 10% from 125%.
China called at the WTO council session on Wednesday for member states to stabilise trade relations and anchor trade measures under WTO rules.
“Unilateral tariffs and the threat of ‘reciprocal tariffs’ are just like adding fuel to the fire, which is simply wrong. An open, stable and rules-based international economic and trade order serves the common interests of all,” China said.
WTO Reform
The U.S. called on members to address what it called failures in commercial relations that had caused huge trade deficits, and for urgent reform of the WTO system.
“The multilateral trading system, as currently constructed, has been unable to address the serious challenges that face the system,” a U.S. statement said. It added that WTO members had not addressed severe trade imbalances and non-market policies that it described as contrary to WTO principles.
Some 47 members sponsored a statement requested by Singapore and Switzerland at the meeting, reaffirming their commitment in support of the rules-based multilateral trading system.
(With inputs from Reuters)
