Standing on the Right Side of History and Justice

(Ouyang Daobing, Counsellor of the Chinese Embassy in Myanmar)

On 2 April 2025, the US introduced so-called reciprocal tariffs, imposing disproportionate rates on all global trading partners, including China. Despite the impact of the 28 March Mandalay earthquake, the US imposed a steep tariff of 44 per cent on Myanmar, affecting textiles, clothing, agriculture, timber, minerals, and many other sectors. This action seriously violates international trade rules, undermines the multilateral trading system, and destabilizes the global economic order. Amid widespread international opposition, the US has since announced delays in implementing tariffs for certain trading partners and exemptions for specific products. On 8 May, the United Kingdom agreed with the US to withdraw tariffs in particular sectors. On 12 May, China and the US issued the Joint Statement on the China-US Economic and Trade Meeting in Geneva, substantially reducing bilateral tariff levels. What does this tariff war launched by the US against the world really mean? I would like to share my perspective.

I. What Are Reciprocal Tariffs?
The US has repeatedly claimed that implementing reciprocal tariffs aims to reduce trade deficits, increase fiscal revenue, protect American industries, and achieve “manufacturing reshoring”. While this appears fair and reasonable, it actually defies economic principles and common sense in business trade, representing typical economic and trade bullying. Under the banner of pursuing “reciprocity” and “fairness”, the US is essentially following an “America First” policy and seeking “American exceptionalism”, adopting an attitude of selective application to overturn the post-war trade order and rules system that it helped establish.
The core premise of reciprocal tariffs is based on viewing trade deficits as “foreign countries taking advantage of America”, propagating the “America is losing” theory, which is completely inconsistent with facts. First, America is not at a disadvantage; on the contrary, it is the primary beneficiary of the current international trade system. In 2024, among the Global 500 companies, 136 American enterprises made the list, ranking first in number. Second, the US trade deficit results from combined market forces, influenced by economic structure, the international division of labour, the dollar’s currency status, and various other factors. Moreover, the essence of trade is mutual benefit; a trade deficit does not equal a trade disadvantage. Third, the US consistently maintains a surplus in services trade, with a surplus of approximately US$300 billion in 2024. The US only discusses goods trade deficits while never mentioning trade surpluses in services, obviously presenting a one-sided perspective.
Reciprocal tariffs harm the global economic recovery and backfire on the US. Shortly after implementation, the tariffs triggered severe global market turbulence, with major stock indices plummeting and the dollar and US Treasury indices weakening continuously. On 30 April, the US Department of Commerce announced that in the first quarter of 2025, the US GDP contracted by 0.3 per cent quarter-on-quarter, marking the worst quarterly performance for the US economy since 2022. The Budget Lab at Yale predicts that these tariffs will cost the average US household over $4,000 annually and impose more than $400 billion in additional costs on American businesses annually. The International Monetary Fund stated that US tariff measures represent a critical negative shock to the global economy, revising the 2025 world economic growth forecast from January’s 3.3 per cent to April’s 2.8 per cent. The World Trade Organization’s latest report shows that US tariff policies have caused a dramatic deterioration in global trade prospects, with global merchandise trade volume expected to contract by 0.2 per cent in 2025.
The US government’s unilateral actions have sparked enormous domestic opposition. Protesters have taken to the streets in many areas, and 13 states, including California and Oregon, have sued the federal government. Top US economists and former government advisors have initiated an Anti-Tariff Declaration, garnering signatures from over 1,000 prominent individuals. Former US Treasury Secretary Lawrence Summers directly criticized the actions of the US government as the biggest self-inflicted wound to the American economy in US history.

II. Why China Had to Implement Countermeasures
In response to the US raising reciprocal tariffs on China to 34 per cent, 84 per cent, and 125 per cent in three successive rounds since April, China has implemented firm and justified countermeasures, imposing equivalent percentage tariffs on US goods three times, while taking multiple additional measures, including filing cases under the WTO dispute settlement mechanism and implementing export controls on medium and heavy rare earth-related items.
As the world’s largest developing country and a dignified, responsible major power, China’s countermeasures aim not only to protect its legitimate rights but also to safeguard the common interests of the international community, including the vast number of developing countries, and to defend international fairness and justice. China has always believed that upholding the authority of the United Nations, firmly maintaining the international system with the UN at its core, the international order based on international law, and the basic norms of international relations founded on the purposes and principles of the UN Charter are the prerequisites and guarantees for maintaining world peace and promoting common development.
Since the US initiated the trade war against China in 2018, the Chinese economy has increasingly demonstrated resilience, continuously striving under pressure. China remains the world’s largest trading nation in goods, serving as the main trading partner for over 150 countries and regions, having signed 22 free trade agreements with 30 countries and regions, and contributing 30 per cent to global economic growth. China remains a fertile ground for investment and business and a trustworthy trading partner. We will continue to focus on managing our own affairs, undisturbed by external interference, undaunted by threats or extortion, and uninterrupted in our pace, providing the world with greater certainty, future prospects, and opportunities through concrete actions.

III. Where Does the Direction of World Development and Progress Lie?
Since World War II, economic globalization has optimized the allocation of production factors such as capital, information, technology, labour, and management worldwide, forming an interdependent and closely connected global economic pattern. The latest report from the United Nations Conference on Trade and Development shows that international trade reached $33 trillion in 2024, setting a new historical record. This fully demonstrates that economic globalization is not artificially created and will not be reversed by the will of certain countries. Regardless of which country promotes “country-first” policies, these are unilateral actions serving hegemonic interests at the expense of the legitimate interests of countries worldwide, running counter to the historical tide of economic globalization and continuing to face collective opposition from the international community.
Currently, the world is undergoing profound changes unseen in a century, facing deficits in peace, development, security, and governance. In addressing these deficit crises, it is crucial for us to clearly identify those responsible for causing destruction and those who are actively contributing. What the world needs is openness, not barriers; justice, not hegemony; unity, not confrontation. Countries, regardless of size, strength, or wealth, should all be equal members of the international community. All nations should integrate their own development with world development and combine the interests of their own people with the common interests of all peoples, jointly advocating for an equal and orderly multi-polar world and inclusive economic globalization, while collectively opposing self-centred hegemonism and jungle law where the strong prey on the weak. Only then can we advance global governance and economic order in a more just and reasonable direction.
UN Secretary-General Ant ónio Guterres stated, “The impacts of trade wars are extremely negative; no one can win, and everyone will lose.” At a critical moment, the China-US Geneva trade talks achieved substantial progress, with the US eliminating 91 per cent of additional tariffs and China correspondingly removing 91 per cent of countermeasures; the US suspended 24 per cent of reciprocal tariffs, and China similarly suspended 24 per cent of countermeasures. After the joint statement was released, global markets generally rallied, with many stock markets rebounding to pre-reciprocal tariff levels. This again demonstrates that closing one’s own doors will not make oneself stronger, blocking others’ paths will not help oneself go further, and waging tariffs and trade wars does not win hearts and minds.
The China-US Economic and Trade Meeting in Geneva represents an important step towards resolving differences through equal dialogue and consultation. However, fundamentally solving the problem requires the United States to completely correct its erroneous practice of unilateral tariff increases and calls for just support from the international community. We firmly believe that people worldwide will choose to stand on the right side of history and justice. This year marks the 75th anniversary of diplomatic relations between China and Myanmar. China will continue to uphold the principles of amity, sincerity, mutual benefit, inclusiveness and a shared future for humanity in its neighbourhood diplomacy, sharing weal and woe with Myanmar and helping each other. Together, we will defend the multilateral trading system, resist unilateralism and trade bullying, and join hands to create a beautiful future of peace, cooperation, openness, and inclusiveness.

(The opinions, beliefs, or perspectives presented in the article are solely those of the author).

_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}