Source: Global Times

On September 14 to 15, local time, China-US economic and trade China leader, State Council Deputy Prime Minister Ho Li Feng and U.S. Leader, U.S. Treasury Minister Besent and Trade Representative Griel held talks in Madrid, Spain. The two sides led the important consensus of the two heads of state, on the economic and trade issues concerned by the two sides have been honest, in-depth and constructive communication, in cooperation to properly solve TikTok related issues, reduce investment barriers, promote related economic and trade cooperation, etc. The two sides will consult on relevant results documents, and implement their domestic approval procedures.

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He said that the Chinese side is determined to safeguard its legitimate rights and interests and will resolutely safeguard the national interests and the legitimate rights and interests of overseas Chinese enterprises.For TikTok, China will conduct technology export and approval in accordance with the law.At the same time, the Chinese government fully respects the will of overseas enterprises, supporting enterprises to conduct equal business negotiations with partners on the basis of compliance with the market principle.

He Lifeng pointed out that the essence of Sino-US economic and trade relations is mutual benefit and win-win, and both sides have broad space for cooperation and extensive common interests. Sino-US cooperation will benefit both sides, while fighting will lose both sides. It is hoped that the United States and China will meet each other halfway, lift relevant restrictive measures against China as soon as possible, jointly safeguard the hard-won results of the talks with practical actions, and continuously create a good atmosphere for the stability of Sino-US economic and trade relations.

The two sides agreed that stable Sino-U.S. economic and trade relations are of great significance for the two countries, but also have an important impact on global economic stability and development.The two sides will continue to implement the important consensus of the two heads of state and the results of the previous economic and trade talks, give full play to the role of the Sino-U.S. economic and trade consultation mechanism, continuously increase consensus, resolve differences, strengthen cooperation, strive for more win-win results, promote the healthy, stable and sustainable development of Sino-U.S. economic and trade relations, and inject more stability into the world economy.

Since May this year, from Geneva to London, from Stockholm to Madrid, China and the United States have held four economic and trade talks, continuing to move towards the right direction to resolve economic and trade issues through dialogue and negotiation. China World Trade Organization Research Council Vice President Ho Xinhua said in an interview with the Global Times that China and the United States Madrid economic and trade talks have achieved results, sending positive signals to the world at the time of the international community¡¯s desire for certainty and stability. This shows that although there are still differences on some economic and trade issues, the two sides are working to solve their concerns through dialogue and consultation, and are committed to finding solutions to the problem.

Xi Jinping said that the essence of China-US economic and trade relations is mutual benefit and win-win, and the talks between the two sides should also be carried out on the basis of mutual respect and equal consultation. In this meeting, China adhered to the consistent negotiation principle, opposing the U.S. to politize, instrumentalize, arm, and resolutely safeguard the national interests and the legitimate rights and interests of Chinese enterprises. Xi Jinping said that China-US needs to make more efforts to more results, especially the U.S. needs to show more sincerity, abandon the wrong practices of unilateral pressure on China, and work with China to jointly safeguard the world trade order and global supply chain security and stability, and inject more confidence and strength in the global economic stability and development.

Further reading:

Trump is asked to pressure China to fundamentally adjust China¡¯s economic model

Just as the delegations of the two countries held economic and trade talks in Madrid, Spain, the notorious ¡°US-China Strategic Competition Special Committee¡± (hereinafter referred to as the ¡°Chinese Commission¡±) of the U.S. House of Representatives again jumped out to do things.

A letter seen by Reuters on September 15 revealed that all members of the Democratic Party of the ¡°Chinese Committee¡± wrote a letter calling on the Trump administration to put pressure on China to curb the so-called ¡°structural overcapacity¡± and ¡°fundamentally adjust China¡¯s economic model,¡± claiming that any bilateral trade agreement between the United States and China should contain ¡°binding requirements¡± ¡°to force China to cut its industrial overcapacity.¡±

The letter wasly sent to U.S. Treasury Secretary Bessent and other senior trade officials on September 12. The content of the letter reiterates the arguments of the Biden government, especially former U.S. Treasury Secretary Yellen, but is unlikely to shake the Trump-led Republican government¡¯s stance.

China has repeatedly stressed that the so-called "overcapacity" means that the excess is not production capacity, but anxiety. In essence, the countries concerned are worried about their competitiveness and market share. Using this as an excuse to discredit and suppress China is another new trick of "double standards" and trade protectionism.

The top two of the U.S.-China Strategic Competition Special Committee in the U.S. House of Representatives: Republican Chairman John Mueller and senior Democrat Rajya Krishnamurti

According to reports, U.S. Treasury Secretary Bessent and U.S. Trade Representative Greer have traveled to Madrid for the Sino-U.S. economic and trade talks, the letter also sent to U.S. Commerce Secretary Lutnik, and the U.S. Treasury and Commerce Department have not yet responded to questions about the letter.

Around the so-called ¡°excess capacity¡± issue, the letter continues to defame China and claims that the ¡°excess capacity¡± issue should be discussed in the Madrid-China economic and trade talks.

Democrats in the "China Committee" also hyped that the United States should work with its allies and partners to build a set of "international response measures" to "deal with China's overcapacity". To this end, they said that the Trump administration needs to adopt a "more balanced" approach to its allies on tariffs.

After several rounds of tariff wars this year, since May, China and the United States have held three rounds of economic and trade talks in Geneva, Switzerland, London, England and Stockholm, Sweden. The two sides have reduced tariffs with each other and are in a state of "trade truce".

On August 12th, China and the United States issued the Joint Statement on Sino-US Stockholm Economic and Trade Talks. The United States promised to continue to suspend the implementation of 24% reciprocal tariffs for 90 days from now on, and China also promised to continue to suspend the implementation of 24% tariffs on the United States and Canada and related non-tariff countermeasures for 90 days from the same day.

Reuters pointed out that at present, the two largest economies in the world have been trying to turn the tariff truce agreement into a lasting trade agreement.

On September 14th, local time, China and the United States held talks on relevant economic and trade issues in Madrid, Spain. A spokesman for China's Ministry of Commerce previously stated that the two sides will discuss economic and trade issues such as unilateral tariff measures of the United States, abuse of export controls and TikTok.

As early as the last Democratic government, these people, represented by then U.S. Treasury Secretary Yellen and then U.S. Trade Representative Dai Qi, frequently made absurd remarks against China and hyped "China's overcapacity theory".

With regard to the so-called "China overcapacity theory", the spokesman of the Ministry of Foreign Affairs of China has previously pointed out that the U.S. has hyped the Chinese new energy industry "overcapacity", completely deviating from objective facts and economic laws, in essence is protectionism.The development of China's new energy industry, is the result of the company's long-term accumulation of technology and open competition, is in full competition and not supplemented by industrial subsidies, fully in line with the laws of market economy and fair competition principles.

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