Building a China-Sri Lanka community with a shared future

US tariffs could not only affect legitimate rights and interests of global trade partners, but also pose severe consequences for US economy itself

Recently, the US Government, disregarding unanimous opposition from the international community, announced its decision to impose so-called “reciprocal tariffs” on all trading partners including China and Sri Lanka. This move was followed by repeated policy reversals, creating significant chaos and uncertainty on a global scale. Moreover, this uncertainty continues to accumulate, potentially causing broader turmoil and even triggering a global economic recession.

By recklessly imposing tariffs on other countries, the US defies the fundamental laws of economics and market principles, disregards the balanced outcomes achieved through multilateral trade negotiations, ignores the fact that the US has long benefited substantially from international trade, and weaponises tariffs to exert maximum pressure for selfish interests. This is a typical act of unilateralism, protectionism and economic bullying. Such actions not only directly infringes upon the legitimate rights and interests of global trade partners, but also pose unpredictable and severe consequences for the US economy itself. Currently, the US stock market is plunging, Treasury bonds are being sold off, and inflationary pressures are mounting, living costs and financial strain on ordinary Americans are increasing. Voices of opposition within the US against the excessive use of tariffs are growing louder. 

As a matter of fact, the US and other Western developed countries have been the architects and long-time leaders of the global free trade system established after World War II. People in Global South countries, including China and Sri Lanka, have only been able to earn meagre foreign exchange earnings by working really hard to provide high-quality, low-priced commodities to developed countries like the US. Meanwhile, the US, by occupying the high end of the industrial chain, has earned substantial profits by exporting services, high-tech products and equipment. What’s more, many products manufactured by developing countries like China and Sri Lanka and exported to developed countries are essentially products of Western companies. 

The US and its ruling class are the primary beneficiaries of economic globalisation, while the Global South countries have long called for reform of the unjust international political and economic order. However, the US repeatedly claims to be harmed by trade deficits, ignoring the role of imported goods in reducing its living costs and diversifying its consumers’ choices, not to mention the dominant position the US holds in service trade. Today, the US is wielding tariffs as a weapon to intimidate other countries, attempting to force “manufacturing re-shoring” through measures that defy basic economics. This approach is a case of repaying kindness with enmity—it harms others while failing to solve the US’s own problems. This approach undermines the development rights of countries around the world, especially those in the Global South, and runs counter to the principles of globalisation. Such actions are doomed to fail. This approach has caused widespread disappointment and unease across the globe and has been encountered with unanimous opposition from the international community. 

Openness and cooperation are the prevailing trends of history, and mutual benefit is the shared aspiration of all. For the majority of countries committed to development and revitalisation—including Sri Lanka—a free and open multilateral trading system is of vital importance. A secure and stable international environment is indispensable, and the more cooperative and reliable economic and trade partners there are, the better. Looking back at history, the evolution of globalisation has always advanced through twists and turns amid turbulence. Since the formation of the modern world system, depressions and wars have occasionally erected high walls between countries and continents. But the common pursuit of cooperation and prosperity of humanity has always broken through these barriers and brought global integration to new heights.

 A major country should have the responsibilities of a major country. It must not pursue profit at the expense of principles, nor should it bully the weak with its strength. As the second largest economy, the second largest market for consumer goods, and a firm supporter of the multilateral trading system, China has always believed that cooperation is the only right path to addressing global challenges, and multilateralism is the inevitable choice for overcoming the difficulties the world faces. There are no winners in trade or tariff wars. Protectionism is a dead end. Solidarity and cooperation is the right way forward for humanity. China will continue to work with the international community to firmly oppose the US’s reckless imposition of tariffs.

Moreover, China will continue to advance high-standard opening up, and implement high-standard policies for trade and investment liberalisation and facilitation, share development opportunities with the world to achieve mutual benefits, win-win outcomes and shared prosperity, and promote a universally beneficial and inclusive economic globalisation. Since 2017, the negative list for foreign investment has been shortened from 93 to 29 items nationwide, and all restrictions on access in the manufacturing sector have been removed. In 2024, 59,000 foreign-invested companies were newly established in China, up by 9.9% year-on-year. China’s total import and export of goods reached RMB 10.3 trillion in the first quarter this year, of which exports exceeded RMB 6 trillion with a relatively fast growth of 6.9%. China is the world’s market and a source of opportunities for every country. In a world full of uncertainties, China will continue to seek joining hands rather than throwing punches, removing barriers rather than erecting walls, and promoting connectivity rather than decoupling. We will further expand the trade network, be an even stronger magnet for investment, and provide stability and positive energy to the world economy through high-quality development and high-standard opening up.

China and Sri Lanka are good friends, good brothers and good partners from history to present. Our cooperation has become a model of South-South cooperation. Under the new circumstances, China stands ready to work with all countries in the world including Sri Lanka, to firmly uphold multilateralism, oppose economic bullying and trade protectionism, jointly safeguard international fairness and justice, and strive to foster a stable global environment for development. In this process, China will resolutely implement the important consensus reached between President Xi Jinping and President Anura Kumara Dissanayake, bring greater opportunities to Sri Lanka through China’s high-quality development, and work together to jointly build a China-Sri Lanka community with a shared future for greater benefits of the people of the two countries and the region.

(The writer is the Ambassador of the People’s Republic of China in Sri Lanka.)