China's Former Deputy Finance Minister on Trade War, Tariffs, and Economic Stability

China's Stance on Trade Negotiations

• 🇨🇳 China's policy is to maintain a healthy, stable, and sustainable relationship with the US, based on mutual respect and coexistence.
• 🚫 China will never yield to outside pressure and will retaliate against unfair trade practices, viewing negotiations solely based on US conditions as impossible.
• 🤝 Real trade negotiations should be based on mutual respect, not just pressure, and should follow WTO rules.

Economic Outlook and Growth Drivers

• 🎯 China is fully confident in achieving its economic development goal of around 5% GDP growth for the year, the final year of its 14th five-year program.
• 💡 Growth will be driven by domestic consumption, supported by a large population and a growing middle class, alongside productivity enhancements and digital economy development.
• 💰 The digital economy already accounts for over 44.6% of China's total economy, with plans to boost consumption further.
• ⚠️ China has taken action to address local government debt issues, increasing it by 14.3 trillion yuan, to support economic development.

Global Economic Contribution

• 📈 Since 2009-2010, China has contributed over 30% of new global GDP growth annually and aims to continue this contribution.
• 🌍 The world should understand China's role and the increasing importance of global coverage.

US Treasuries and Currency Stability

• 🏦 Chinese investors and the government are responsible investors who understand the importance of global market stability.
• ⚠️ Dumping US treasuries is unlikely, as it would depend on mutual understanding, respect, and cooperation.
• 💰 High US government bond interest payments and trade deficits present significant pressure on US finances.
• 🇨🇳 China's Renminbi (yuan) policy is to maintain relative stability, managing fluctuations carefully to contribute to global market stability.