U.S. should abandon "China Collapse" narrative, cherish China's goodwill in tariff talks: economist

The Star

11-05-2025

BEIJING, May 11 (Xinhua) -- The United States should cherish China's goodwill and sit down for a sincere talk rather than peddle the unfounded "China Collapse" narrative, a Chinese economist wrote in a signed article provided to Xinhua, emphasizing China's robust economic performance this year.
"We should let facts, not slanders, speak about China's economic performance, and the world would have a fair judgment," wrote Dong Yu, executive vice president of the China Institute for Development Planning at Tsinghua University, in the article titled "China's Economic Fundamentals from the Perspective of Macroeconomic Regulation."
Citing solid figures in China's economic growth, employment, price stability, and the balance of international payments this year, the article said, "Few major economies have managed to maintain stable performance across all the four key targets as China has."
Meanwhile, he wrote that the U.S. GDP contracted at an annualized rate of 0.3 percent quarter-on-quarter in the first quarter of 2025, and hiring at U.S. companies in April slowed to its lowest pace in nine months, among other sluggish indicators.
The article said China has not underestimated the challenges posed by external environmental changes to its domestic economy, noting that a series of incremental policies have recently been introduced to address both the direct and indirect impacts of the tariff war.
Multiple leading global investment institutions have forecast steady growth for China's economy in 2025, and the country's forthcoming 15th Five-Year Plan is poised to unlock new opportunities for global investors, injecting certainty into the development of both China and the world, he wrote.
In contrast, the United States was aggressive when instigating the tariff war, but has turned a blind eye to calls from its people, according to the article. "To this day, no systemic policies have been introduced on the people's livelihoods; instead, the United States has concentrated efforts on partisan fights and manipulating the capital markets."
If a government fails to engage in long-term planning, lacks human capital and infrastructure, has uncoordinated industrial and supply chains, and does not even lead in automation or robotics, then claiming it can revive manufacturing through tariffs is nothing short of a "ghost story," he wrote.
The recent changes in the U.S. stock market do not signify a restoration of confidence, according to the article. "On the contrary, they reflect international capital's observation that China has neither abandoned goodwill nor closed the door to negotiations."
"Of course, such goodwill and patience won't be unlimited," he wrote, "and absolutely do not apply to those who persist in unscrupulous coercion, extortion, and reneging on commitments."
What the United States truly needs now is to cherish China's goodwill, demonstrate its own sincerity, and engage in earnest negotiations, rather than pinning hopes on the baseless "China Collapse" narrative, which will never materialize, according to the article.