A day before Prime Minister Scott Morrison crucial meeting with US President Trump on eve of G-20 summit in Osaka, Japan with plea to lower trade tension with China, Cheng Jingye, Ambassador of China in Australia Wednesday warned that there’s no winner in a trade war.
“The trade tension between China and the US is of great concern to the international community. The wilful imposition of additional tariffs by the US goes against the WTO rules. It harms others and is of no benefit to itself. It also threatens global economy and trade”, he said addressing Australia China Business Council Canberra Networking Day Opening ceremony.
Prime Minister Scott Morrison accompanied by Finance Minister Mathias Cormann, Trade Minister Simon Birmingham and Australian ambassador to Washington Joe Hockey will meet with President Trump at working dinner on Thursday night.
It is expected that Prime Minister Morrison, worried over trade war between world top two economies affecting the global economy including Australia would urge US President to find a solution of trade dispute with China.
“The impact of any further deterioration of the relationship will not be limited to these two major powers”, Morrison said at an event in Sydney before leaving to attend G-20 summit.
Chinese Ambassador in his key note address reflects on China’s achievements past 70 years which according to him are widely regarded as an economic miracle never recorded in human history.
On ongoing trade dispute with United States, he told the participants that China has been committed to resolving the economic and trade disputes through dialogue and consultation, and has made tremendous efforts to this end.
“China is willing to work together with the US to reach a win-win solution on the basis of equality and mutual respect as there is no winner in a trade war”, he emphasized.
He was firm that China does not want a trade war, nevertheless it will firmly safeguard its own legitimate interests and development rights.
“China is open to negotiation, but will also fight to the end if needed”, he made it clear.
About relationship between China and Australia, Cheng Jingye said that mutual political trust and mutually beneficial cooperation are just like two wheels that would smoothly drive our bilateral relationship forward.
“The relationship between China and Australia can only be steadily and increasingly improved when both wheels are spinning with the same speed and in the same direction, mutually reinforcing each other”, he maintained.
To further build the ties, he urged that it requires us to respect each others’ development path, social systems and core interests. It also requires us to expand common grounds while properly handling differences.
“China and Australia both support free trade and open economy, we should work together with others to uphold multilateral trade systems against protectionism”, he suggested.
Madelene King, Shadow minister for trade echoing the Chinese Ambassador in rejecting the protectionism said protectionist sentiment and trade conflict are an increasing risk for the Australian economy.
“Nobody wins from a trade war, and that is especially the case for a heavily trade dependent nation like Australia”, she said.
Madelene King urged that it is in Australia’s interests and those of both China and the United States to ensure there exists an open international trading system and to promote regional cooperation anchored in a rules based order.
