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US seeking to ‘colonise’ China’s economy with trade deal, says veteran economic policymaker Li Deshui

  • US demanded China amend domestic laws and proposed establishment of bilateral office to debate Beijing’s economic policies, Li Deshui says
  • Trade war is part of a bigger US strategy to contain China by limiting development in key industries, he says

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Veteran economic policymaker Li Deshui said the trade war was part of a bigger US strategy to contain China, a widely held view among conservatives in Beijing. Photo: CNS

A veteran Chinese economic policymaker has revealed certain United States demands made during trade negotiations with China that were later rejected by Beijing, confirming previous media reports and shedding light on mainstream thinking about US policy among China’s economic officials.

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Li Deshui, a former chief of China’s statistics bureau, wrote that the US side had specifically demanded that China amend its domestic laws and proposed to establish a permanent bilateral office to debate Beijing’s economic policies, according to an article obtained by the South China Morning Post.

In addition, Washington had requested a one-sided enforcement mechanism that allowed it to impose sanctions on China if it was unhappy with economic policies, but China could not retaliate, Li said. The US had also tried to restrict China’s hi-tech industry and state-owned enterprises and to urge China to open up its financial sector and markets “unconditionally”, Li said.

It is the first time that a senior figure in Beijing has revealed US demands in trade talks that failed in May after Beijing rejected the US proposals.
This is a wholly unfair treaty that seeks to colonise China’s economy. If this is accepted, then it is giving up China’s development path
Li Deshui
Beijing and Washington resumed talks on Thursday, but prospects of the world’s two largest economies reaching a comprehensive deal are dim. However, there were signs of de-escalation recently when China agreed to resume the purchase of some US farm products and US President Donald Trump agreed to lift tariffs on 400 Chinese goods.
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