Thisyear,theU.S.haspersistentlyexertedtradefrictiononChina,whicheventuallytriggeredthefirstshotsofatotaltradewar.Additionally,theU.S.hastargetedthe鈥淢adeinChina2025鈥漵trategy,deemingChina鈥檚aspirationstocatchupwiththetechnologiesofdevelopedcountriesandtakingoverglobalhighendmanufacturingan鈥渆conomicinvasion鈥漮ftheU.S.Thisaccusationneglectedobjectivelawofindustrialdevelopment,andthemeasuresitpromptswillheavilydamageglobaleconomicorderandtheindustrialdivisionsystem.
Sincethe1980s,thankstoitsreformandopeningupaswellaslowlaborcosts,Chinahasdevelopedasoundbusinessenvironmentthathasattractedamassivechunkofglobalmanufacturing,greatlyimprovingthecountry鈥檚industrialproductionsystemandincreasingitsproductioncapacity.Eventuallydubbedthe鈥渨orldfactory,鈥滳hinahasenrichedthesupplyofindustrialproductsworldwide,benefitingtheentireplanet.TradebetweenChinaandtheU.S.shiftedfromdeficittosurpluswiththedramaticchangesintradestructure:ChinaexportsmostlymanufacturedgoodsespeciallyelectroniccommoditiestotheU.S.whileimportingagriculturalproductslikesoybeans.
Thetraderelationsandstructurebetweenthetwocountrieshaveresultedfromtheirrespectiveindustrialcompetitivenessandcomparativeadvantages.Whenthedivisionoflaboringlobalmanufacturingtransferredfromindustriestocommodities,China鈥檚comparativeadvantagebecameprominentwithstrongercompetitivenessinmanufacturinglow-andmiddle-endproductsthantheU.S.andEuropeancountries.ThishasexpandedChina鈥檚marketsharerapidly.Relativelyspeaking,theU.S.andEuropeancountrieslackedcomparativeadvantagesinsomemanufacturingsectors.Andduringglobalindustrialtransferandre-divisionoflabor,ChineseenterprisestookovermanufacturingandprocessingfromU.S.andEuropeancompanies,freeingthemuptofocusmoreresourcesonhighvalue-addedproductionchainstepslikedesignandmarketing,whichfacilitatedtheU.S.andEuropeancountriesintheirtransfertoservice-orientedeconomies.
China鈥檚manufacturingprimarilyfeatureslow-andmiddle-endproductsthatexerttremendouspressureonthecountry鈥檚environment.China鈥檚manufacturingneedstoevolvetoanewstagecorrespondingtoitsrisinglaborcosts.The鈥淢adeinChina2025鈥漵trategywasthusdesignedtofacilitatesuchanupgradeinaccordancewithobjectivelawsofindustrialdevelopment.
Theadjustmentofglobalindustrialdivisionobjectivelydemandsinvolvedcountriesaccordinglyadjusttheireconomicandsocialstructuresaswellaspatternsofincomedistribution.Butduringtheindustrialtransferofmultinationalcorporations,theU.S.governmenthasnothandledwelltheissueslikeemploymentandwealthdistribution,causinggreattroubleinthecountry.TheTrumpadministrationblamesinternalstrugglesontheconflictswithChinaandignoredWTOregulationstolaunchatradewartargeting鈥淢adeinChina2025鈥漵trategy.However,atradewarcannotsolveAmericandomesticproblemsandwillonlyhindertheeconomicdevelopmentoftheworld.
The鈥淢adeinChina2025鈥漝evelopmentstrategyendeavorstosolveproblemsplaguingChinesemanufacturinglikemodestproductquality,risinglaborcosts,denseresourceconsumptionandcostlyenvironmentalpollution.Solvingtheseproblemswillnotharmothercountries鈥檌nterests,butimprovethelevelandqualityofglobalindustrialdivisionandcooperationwhilemakingconstantcontributionstotheworld.OverthepastfourdecadessinceChinaimplementeditsreformandopeningup,thecountryhasgraduallybecomemoreinvolvedinglobalaffairsanddevelopeditseconomybyfollowinginternationalrulesandnorms,becomingamajordriverofworldeconomicgrowth.OppressingthedevelopmentofChina鈥攁nemergingeconomy鈥攊sakintodraggingworldeconomicadvance.DonaldTrumpseeksunilateraltradeprotectionisminanefforttochangetheestablisheddevelopmenttrackofglobalindustrialdivisionandlowertheefficiencyofit.Thisrunscontrarytotheobjectivelawofglobalindustrialdevelopmentandharmsbothsides.
IftheU.S.stopsexportinghightechtoChinaandslapstariffsonimportedChinesecommodities,Chineseenterpriseswillonlybeimpactedintheshortterm.Inalongrun,runningcontrarytothetrendofglobalization,Washington鈥檚movewilleventuallydamagetheinterestsofAmericanenterprisesandpeople.TheU.S.cannotstopChinafromtransferringandupgradingitsmanufacturingindustrybecausethedriveisrootedinChinesepeople鈥檚aspirationsforbetterlives.InnovationisbecomingthedrivingforceofChina鈥檚economy.Followingtheobjectivelawofindustrialdevelopment,the鈥淢adeinChina2025鈥漵trategypresentsaroadmapforChinatoacceleratetechnologicalinnovationinmanufacturingandoutlinespoliciesandasystemtofullyutilizethemarketeconomylawstoencourageenterprises鈥檛echnologicalinnovationinputs.Chinaattachesgreatimportancetointellectualpropertyrights(IPR)protection,whichisalsoanimportantpartinimplementingthe鈥淢adeinChina2025鈥漵trategyandinbuildinganinnovation-orientedcountry.ChinahasconstructedandcontinuedtoimproveitslegalsystemforIPR.Withitshugemarket,solidindustrialsystem,innovation-orienteddevelopmentandstrictIPRprotection,China鈥檚industrialupgradewillnotbestoppedbyoutsideforces.
TheauthorisaresearcherattheInstituteofIndustrialEconomicsofChineseAcademyofSocialSciences.