Free Trade Should Not Fall Victim to Political Manipulation

2025-03-21 17:14

Free Trade Should Not Fall Victim to Political Manipulation

(By Dr Ruan Zongze, Chinese Consul General in Brisbane)

Recently, the U.S. has been bent on using the fentanyl issue as a flimsy excuse to raise tariffs again on Chinese imports. The U.S. is sick but expects China to take the pill—this is undoubtedly a typical unilateral, protectionist, and bullying practice. Blaming domestic social issues on foreign countries does nothing to solve the underlying problems; rather, it is a counterproductive strategy that will only exacerbate the crisis.

Tariff imposition under false pretenses is merely the tip of the iceberg when it comes to the U.S. manipulation of economic and trade matters. Obsessed with unilateralism, the U.S. frequently invokes so-called national interests to justify trade bullying, causing significant disruptions in global markets. These actions reflect a blatant disregard for established international rules, particularly its obligations under the World Trade Organization (WTO). Furthermore, they expose a broader strategy by the U.S. government to undermine the international economic and trade system and resort to trade coercion to advance unreasonable demands.

Trade serves as a bridge for communication, a bond for cooperation, and a foundation for prosperity. It should not be weaponized as a tool of geopolitical rivalry. Unilateralist actions, such as those taken by the U.S., not only erode the foundation of bilateral economic and trade cooperation but also disrupt the stability of global industrial and supply chains. Such measures severely undermine free trade and fair competition worldwide, incurring strong condemnation from the majority of the WTO members. As WTO Director-General Ngozi Okonjo-Iweala has pointed out, protectionism is neither an efficient nor cost-effective path to inclusiveness. Instead, more and better trade is the path to bring more economies and communities from the margins to the mainstream of the global economy.

Free trade is an essential condition for world economy to grow, which is a fact that will not change no matter how certain countries think otherwise. According to the Global Trade Update by UN Trade and Development, global trade hit a record 33 trillion U.S. dollars in 2024, reflecting a 3.3 percent annual growth. This underscores the prevailing global consensus in favor of free trade and against protectionism. Despite the attempts of certain countries to decouple and sever supply chains or build small yards with high fences, global trade continues to demonstrate remarkable resilience. Businesses across nations remain deeply interconnected through global supply, industrial, and value chains, fostering mutual growth and shared benefits.

Both China and Australia are open economies and beneficiaries of free trade. All parties, including China and Australia, should work together to resist trade protectionism, enhance global trade liberalization and facilitation, and safeguard their legitimate interests. In 2024, our bilateral trade volume in goods exceeded AUD 320 billion, covering key sectors such as agriculture, energy, minerals, education, and services. This robust trade relationship highlights the high level of economic complementarity and cooperation potential between our two nations.

This year marks the 10th anniversary of the China-Australia Free Trade Agreement (CHAFTA). Both countries should fully harness the potential of CHAFTA, consolidate cooperation in traditional sectors such as agriculture and minerals, leverage our complementary advantages in energy transition and other areas, and explore new areas of collaboration, including the digital economy, healthcare, and education, to deliver more tangible benefits to both peoples and contribute to regional and global stability.

Just as winding rivers eventually reach the sea, an open, fair, and transparent multilateral trading system is the natural choice for promoting shared prosperity among nations. Only by firmly upholding multilateralism and the global free trade system can countries share opportunities and benefits in an open environment, realizing common development. China’s Two Sessions have sent a clear signal to the world: China remains committed to high-level opening-up, advancing trade and investment liberalization and facilitation. China stands ready to work with all parties to support a WTO-centered, rules-based multilateral trading system, build an open global economy, and usher in a new phase of economic globalization that is more dynamic, inclusive, and sustainable.