BEIJING:
China urges the United States to sincerely adhere to market principles and international trade rules and create a healthy environment for fair competition among businesses from all countries, a Chinese Foreign Ministry spokesman said on Thursday.
Spokesman Mao Ning made the remarks at a daily news briefing when responding to a question about reports that US President Joe Biden said China was providing subsidies to flood the US market with electric vehicles.
Mao said China’s new energy products, including electric vehicles, are gaining popularity in the international market, relying on continuous technological innovation, healthy industrial and supply chains, and sufficient market competition. Their popularity is the result of the combined effect of comparative advantages and market laws, and the result of business efforts, rather than the result of so-called “subsidies,” he added.
Last year, China exported only 13,000 electric vehicles to the United States, Mao said, dismissing claims that it flooded the U.S. market.
He pointed out that industrial subsidy policies originated in the United States and Europe and are widely adopted by countries around the world. China’s industrial subsidy policies strictly follow the rules of the World Trade Organization (WTO), consistently adhering to the principles of fairness, transparency and non-discrimination. They do not include prohibited subsidies as defined by the WTO, he said.
Calling the United States a big sponsor of its industries, Mao said in recent years, the United States has signed the CHIPS and Science Act and the Inflation Reduction Act to directly intervene in the allocation of market resources through direct and indirect subsidies totaling hundreds of billions of dollars.
Subsidies do not guarantee industrial competitiveness, and protectionism protects backwardness and sacrifices the future, Mao observed.
Published in The Express Tribune, June 7u2024.
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