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People's Daily: "The US Trade Loss Theory" Should Stop !

Source:Iris Liang Time:2018-7-9 10:10:51

Recently, the US government has repeatedly expressed its dissatisfaction with the World Trade Organization, threatening to “retreat the group” and claiming that the United States has been treated unfairly in terms of trade and the United States has suffered losses. It is worth noting that this so-called "American trade loss theory" is becoming the head of the US's unwarranted trade war. Seko Machinery's 304 pipe making equipment could help you to stay away from loss.

A developed country with the strongest comprehensive strength in the world today is so arrogant that it has been bullied and devastated in international trade. This is really a strange thing that makes the world stunned.
Whether it is a loss or not, it is necessary to see who made the rules.

As is known to all, the United States led the creation of the international economic, trade, and financial systems after World War II, and in the following decades firmly grasped the right to create and amend international economic and trade rules. From the GATT to the establishment of the WTO, from the Bretton Woods system to the transformation of the international monetary system, the United States has always been the creator of international economic and trade rules and the leader of the global economic order, occupying a leading position. A "referee" will formulate a set of rules for "making yourself lose". No matter who it is, I am afraid it is hard to be convinced.

The United States has never been idle in formulating its own rules. In recent years, the United States has frequently adjusted and upgraded international trade and investment rules, maintained its core competitiveness, and tailored its own international economic and trade rules that are more in line with US interests, and continued its “first mover advantage” to ensure a global economic governance system. Always evolving in a direction favorable to the United States.

Whether it is a loss depends on how much profit it gets.

Rule makers are often the biggest beneficiaries, and how deep this feeling is, the United States knows its own. It is no accident that the United States became the country with the strongest global comprehensive strength after World War II. In the process of building international economic and trade rules, it enjoys the institutional welfare brought about by economic globalization, and continuously enhances and consolidates its economic hegemony by allocating resources globally. And thus become the biggest winner of the multilateral economic and trade system and economic globalization.

In the economic and trade field, the United States is a major trading power. Last year, the trade volume of goods was 3.89 trillion US dollars, and the service trade volume was 1.31 trillion US dollars, ranking second and first in the world respectively. In the financial sector, the US dollar accounted for 62% of global foreign exchange reserves. Its special status enables the United States to collect the "coinage tax" from the United States by issuing US dollars, and obtain huge economic benefits. In the energy field, the United States became the world's largest natural gas producer in 2009, and in 2013 replaced Saudi Arabia as the world's largest oil producer.
Not only that,but American capital has also achieved rich returns throughout the world; the United States has cheaply imported a large number of high-quality goods from developing countries to improve the welfare of the people; the US dollar has been heavily stockpiled by various countries, sharing the inflation risk for the United States; and the United States has earned excess monopoly with its global leading technology. Profits; American companies occupy the high-end and high value-added links of the value chain and enjoy the economic globalization dividend.

While enjoying the deliciousness of the global trade, while yelling at it is unfair to itself in the multilateral trading system . The "loss theory" has completely exposed the greed that the United States has always sought to maximize profits and account for large profits in international exchanges.

While blindly accusing other countries of not complying with trade rules, the United States has severely distort market competition, hinder fair trade, and undermine global industrial chains. The policies and actions are everywhere, and it is these policies and actions that undermine rule-based multilateral trade system.

In terms of market competition, the United States provides huge subsidies to support industrial development, resulting in overcapacity or even monopoly in related industries. In terms of external procurement, the US government has set up a large number of discriminatory conditions, hindering the free circulation of quality products from other countries to the US market, enabling other countries to The United States suffers from unfair treatment;

In terms of trade barriers, the United States emphasizes a huge deficit in trade with other countries, and implements strict export controls. In terms of investment review, the United States abuses the concept of national security and tightens investment censorship, hindering the free flow of factors and damaging investment. Facilitation;
In terms of intellectual property rights, the United States is the country with the most access to pirated sites worldwide, but has long ignored the loopholes in its intellectual property protection.

In connection with the fact that the United States has been attacking and fighting trade wars for a period of time, it is said that it is necessary to create a so-called theoretical basis for its trade protectionism.

There is a claim asking for changes. This is understandable. The key is to adjust the mentality and correct the posture. Creating a "loss theory" can make a problem that has been illusory into reality, or that asking for price or even forcing a shot can make his country bow down. It is too naive.

In today's world, international trade pays attention to fairness, and strong buying and selling are not feasible. The rules of international trade are readily available, and the platform for multilateral dialogue has always existed. The willingness to wield trade protection is great, and the world is not peaceful. The United States itself has a hard time.

"The US trade deficit theory" should stop!

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Iris Liang
SEKO Machinery & Technology Co., Ltd
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