Speech by Consul General Zhao Jian
This year marks the 45th anniversary of the establishment of diplomatic relations between China and the United States. Over the past 45 years, the China-U.S. relationship has kept forging ahead despite twists and turns, and made great achievements. The two countries are cooperating in more areas than ever, with unprecedentedly intertwined interests and far-reaching influence, which has not only brought great benefits to the people of the two countries, but also promoted world peace, stability and prosperity. China and the U.S. both gain from cooperation and lose from confrontation. How the two countries would get along is the most important matter in international relations in the next few decades, which not only bears on the well-being of more than 1.7 billion Chinese and American people, but also profoundly influences the future and destiny of the mankind. Today’s China-U.S. relations stand at a new starting point, while the historical trend of peaceful coexistence between China and the United States does not change. The ultimate wish of our two peoples for exchanges and cooperation does not change. The expectations of the whole world for a steadily growing China-U.S. relationship do not change. We should learn from the past and work together towards the future.
Last November, President Xi and President Biden successfully held a historic summit in San Francisco. The two heads of state had a candid and in-depth exchange of views on strategic and overarching issues critical to the direction of China-U.S. relations and on major issues affecting world peace and development. They reached over 20 common deliverables in such areas as political affairs and foreign policy, trade and finance, people-to-people exchange, global governance, and military and security. The summit fostered a future-oriented San Francisco vision. President Xi noted that for China and the United States, turning their back on each other is not an option. It is unrealistic for one side to remodel the other. And conflict and confrontation has unbearable consequences for both sides. China is ready to be a partner and friend of the United States, never bets against the U.S. and has no intention to challenge the United States or to unseat it. Instead, we will be glad to see a confident, open, ever-growing and prosperous United States. Likewise, the United States should not bet against China and should instead welcome a peaceful, stable and prosperous China. The two sides should adhere to the principles of mutual respect, peaceful coexistence and win-win cooperation, which should be the right way to get along with each other for the two countries in the new era. President Biden made commitments that the United States is glad to see prosperity in China. It does not seek to contain or suppress China’s development, does not seek a new Cold War, does not seek to change China’s system, does not seek to revitalize its alliances against China, does not support “Taiwan independence”, and has no intention to decouple with China or have a conflict with China.
For some time, China and the United States have conducted a series of dialogues and exchanges at all levels and in various fields, and cooperation in relevant fields has made positive progress. Recently, the two heads of state had another phone call and had a candid and in-depth exchange of views on China-US relations. They both agreed to work hard to stabilize and develop China-U.S. relations. The positive development is welcomed by both societies and the international community.
However, the negative factors of the relationship have also been growing. The crux is that the United States adheres to a wrong view of China, positions China as the most important strategic competitor and the most consequential geopolitical challenge, and adheres to a zero-sum mentality. Some people advocate suppressing and containing China and “decoupling and breaking links”, which has led to constant problems in the relations between the two countries.
- China-U.S. Economic and Trade Relations
Chinese and U.S. economies are highly complementary to each other, closely intertwined and interdependent. China’s economic development enjoys a solid foundation and boasts strong resilience. In 2023, China’s GDP exceeded 126 trillion yuan(17.51 trillion U.S. dollars), with a 5.2% increase over the previous year, higher than most of the major economies. In Q1 of 2024, China’s GDP grew 5.3% year-over-year. China enjoys several distinct advantages, such as a supersize market in terms of demand, a full-fledged industrial system in terms of supply, and abundant, high-caliber labor force and entrepreneurs in terms of human resources. The intrinsic drive, resilience, and potential of China’s economic development remain strong.
China’s pursuit of high-quality development, and nurturing of new quality productive forces will keep injecting new momentum to the economy. China will continue to build a first-class market-oriented, law-based business environment. China will only open its door even wider to the outside world.
The past 45 years of practice has fully reflected the mutually beneficial and win-win nature of China-U.S. economic and trade cooperation. Nowadays, China ranks as the biggest export market for four American states and ranks among the top three export markets for 38 American states. U.S. exports to China alone support more than 1 million jobs for in the U.S. More than 70,000 U.S. companies are doing business or investing in China, making an annual profit of more than $50 billion. In the past five years, the rate of return for FDI(Foreign Direct Investment) in China was 9.1%, much higher than 3% in the U.S. and European countries. ExxonMobil, AstraZeneca, GE HealthCare and many other American companies continue to expand their investment in China. The business community is taking its own actions to vote in favor of China’s opportunities.
Facts have proven once and again that the respective success of China and the United States is an opportunity rather than a challenge to each other. The two sides should stay committed to mutual respect and mutual benefit, expand practical cooperation, and work for win-win outcomes for the two countries and the world at large. U.S. businesses are welcome to continually invest in China, cultivate the market and grow their business. What people should worry about is not whether China’s growth would peak or collapse, but whether they would miss the opportunities in China, since some people are bent on advancing de-Sinicization in the name of “de-risking”. Decoupling and cutting off industrial and supply chains benefits no one. It will only lead to a lose-lose situation.
- “Overcapacity” is a false narrative
Recently some in the U.S. kept hyping up the issue of what they call “China’s overcapacity.” They claim that China’s huge production capacity in electric vehicles, lithium batteries and other fields poses a challenge to the interests of U.S. companies. These arguments not only violate the basic common sense and rational logic of economics, but are also unfavorable to promoting the global allocation of high-quality goods and services.
The new energy industry in China has been developing rapidly in recent years. Both purchases and sales are booming domestically, and there is still great potential in production capacity and market demand. Taking new energy vehicles as an example, in 2023, China’s new energy vehicle production and sales respectively totalled 9.587 million and 9.495 million vehicles, a year-on-year increase of 35.8% and 37.9% respectively. China’s new energy products enjoy significant comparative advantages and huge demand overseas. According to estimates by the International Energy Agency, global demand for new energy vehicles will reach 45 million units in 2030, 4 and a half times that of 2022; global demand for new photovoltaic installed capacity will reach 820 Gigawatts, approximately four times that of 2022. These data are all It shows that the global demand for new energy has huge potential, and China’s production capacity is far from “excess”.
The rapid development of China’s new energy industry stems from the improvement of China’s innovation and R&D capabilities, the support of a complete industrial chain and supply chain, high labor productivity, and China’s huge consumer market. The R&D investment of some Chinese new energy vehicle companies has reached billions of U.S. dollars. Continuous high-intensity R&D investment has laid a solid foundation for the technological strength of Chinese car companies. From the perspective of the industrial and supply chains, China has a huge automobile parts supply chain. In the Yangtze River Delta region, all supporting parts required for a car can be obtained within a 4-hour drive. These facts show that the competitiveness of China’s new energy industry is achieved in a highly open and competitive environment, and relies on real skills and hard work. China’s new energy industry represents advanced production capacity, which not only enriches global supply and alleviates global inflationary pressure, but also makes a huge contribution to the global response to climate change and green energy transformation.
The “theory of China’s overcapacity” is actually hegemonic “over-anxiety”. China’s new energy industry should not suffer the unfair treatment of “double standards”. In one and the same new energy industry, you cannot praise yourself as a role model in addressing climate change and at the same time use the excuse of “overcapacity” to ignore China’s efforts in this regard. You cannot describe the sale of your own products as “free trade” and at the same time accuse Chinese products of being an “attack on the world market”. Tripping others won’t help you run faster.
- Section 301
Over the past weeks and months, the United States has used trade issues as an instrument for political purposes. It has frequently imposed unilateral sanctions, abused the Section 301 tariff review process, and waged a campaign against China’s normal trade, economic and technological activities. The latest move by the U.S. is typical protectionism, political maneuvering and hegemonic bullying. It runs counter to President Biden’s words of “not seeking to contain China’s development” and “not seeking to decouple with China”. It contradicts the spirit of mutual understandings between the two Presidents and severely undermines the atmosphere of bilateral cooperation.
The WTO has drawn a clear conclusion that the U.S.’ Section 301 tariffs violate WTO rules and international law. The U.S. move harms others without benefiting oneself. It will only significantly drive up the cost of imported goods, inflict more loss on American companies and consumers, and make the U.S. consumers pay even more. As Moody’s estimated, 92 percent of the cost for the tariff hikes falls on American consumers, and average U.S. household expenditure increases by 1,300 dollars annually. U.S. protectionist measures will further damage the security and stability of the global industrial and supply chains. We noted that Colorado governor Jared Polis and other U.S. political leaders have said that tariffs are no good for American consumers, the clean energy industry or social development.
As one of the founders of the WTO, the United States has not only failed to be a role model in complying with WTO rules, but also taken the lead in breaching them. By so doing, the U.S. can hardly embody the “fair competition” it champions, nor can it keep its credibility in the international community. We urge the U.S. side to earnestly abide by WTO rules, and immediately revoke the tariff increase. China will do whatever necessary to defend its own interests.
- The Taiwan Question
There is but one China and Taiwan has been an inalienable part of China since ancient times. The government of the People’s Republic of China is the sole legal government representing the whole of China. Taiwan was once occupied by Japanese aggressors over a century ago. In 1943, the Cairo Declaration jointly issued by China, the U.S. and the U.K. stated clearly that all the territories Japan had stolen from China shall be restored to China. The 1945 Potsdam Proclamation reaffirmed those terms must be delivered. After World War II, Taiwan returned to China de facto and de jure. In 1949, the government of the People’s Republic of China was established, replacing the government of the Republic of China as the sole legal government representing the whole of China. The political confrontation across the Taiwan Strait after 1949 was a continuation of the Chinese civil war. But both sides have maintained that there is only one China and Taiwan is a part of China, and remained committed to realizing reunification, though they differed on how to do so. Although China has not yet achieved national reunification, the fact that the mainland and Taiwan belong to one and same China has never changed. The two sides of the Taiwan Strait will surely achieve reunification. This is the firm will of the 1.4 billion Chinese people and an irreversible trend of history.
Tension arose because the Democratic Progressive Party authorities in Taiwan, since coming to power, have refused to recognize the one-China principle and kept pushing forward “de-sinicization” and “incremental independence.” They try every means to sever the historical, cultural and economic bonds with the mainland, suppress Taiwan people supporting reunification and provoke cross-strait confrontation. They have spared no efforts in soliciting U.S. support for their agenda, attempting to tie the U.S. to their separatist chariot. It is their policies pursuing “Taiwan independence” that have changed the status quo and threatened cross-strait peace and stability. The Chinese government and people must take resolute actions to respond to the Taiwan authorities’ actions that split the country for “Taiwan independence.”
The Taiwan question is at the very core of China’s core interests and the most important and sensitive issue in China-U.S. relations. The U.S. has made solemn commitment to China on the Taiwan question. In the 1972 Shanghai Communiqué, the U.S. “acknowledges that all Chinese on either side of the Taiwan Strait maintain there is but one China and that Taiwan is a part of China. The U.S. government does not challenge that position.” According to the 1978 Joint Communiqué establishing U.S.-China diplomatic relations, the U.S. “recognizes the Government of the P.R.C. as the sole legal Government of China” and “acknowledges the Chinese position that there is but one China and Taiwan is part of China. Within this context, the people of the U.S. will maintain cultural, commercial, and other unofficial relations with the people of Taiwan.” Obviously, the one-China principle is the centerpiece of the relevant Sino-U.S. Joint Communiqués, and forms the bedrock of China-U.S. relations.
Unfortunately, the U.S. government has continuously obscured and hollowed out the one-China principle, upgraded official contacts with Taiwan and arms sales to Taiwan. Some officials made remarks that distorted UN General Assembly Resolution 2758 and blatantly supported the Taiwan authorities’ “Taiwan independence” separatist activities.
In response, China’s position is clear. UN General Assembly Resolution 2758 cannot be challenged, and the one China principle cannot be shaken. The elections in Taiwan are local affairs in China. The January elections in Taiwan also proved that the people of Taiwan do not support “Taiwan independence” and the DPP cannot represent the people of Taiwan. The election results cannot change the basic fact that Taiwan is part of China, nor can it change the historical trend that Taiwan will return to the motherland.
The one China principle is the clearest and most authoritative definition of the current status of the Taiwan Strait. It is the anchor of peace and stability in the Taiwan Strait. It is the fundamental and only criterion for judging whether the current status of the Taiwan Strait is being changed. China resolutely defends the one China principle and is willing to do its utmost to promote peaceful reunification with the greatest sincerity, but will never allow anyone to pursue “Taiwan independence.” “Taiwan independence” is incompatible with peace across the Taiwan Strait. We hope that the United States government will fulfill their promise of not supporting “Taiwan independence”, adhere to the one China principle to the letter, truly support the efforts of the Chinese government and people to promote the reunification of the motherland, and stop arming Taiwan, stop “using Taiwan to contain China”, do not send any groups to cheer for the so-called inauguration ceremony of leaders of the Taiwan region, avoid sending any wrong signals to the “Taiwan independence” separatist forces, and take practical actions to maintain peace and stability across the Taiwan Strait.
Dear friends,
China sincerely hopes that the United States can work with us to meet each other halfway, jointly promote the implementation of the important consensus reached by the two heads of state, adhere to the three principles of mutual respect, peaceful coexistence, and win-win cooperation, support exchanges and cooperation between the two countries in all fields, and continue the momentum of stabilization and improvement of China-U.S. relations. The Chinese Consulate General in Chicago will continue to build bridges between the two countries. We hope that friends from the media will view China and China’s development in an objective angle, present the true image of China to the American people, and accumulate more positive energy for the healthy and stable development of China-U.S. relations.
Thank you.