As U.S.-China trade tensions linger, Beijing has redirected its diplomatic focus beyond one-on-one negotiations with Washington, championing a multilateral approach to stabilize global trade and safeguard its economic interests. At a high-profile meeting of the World Trade Organization’s (WTO) General Council in Geneva on Wednesday, Chinese representatives called on WTO members to reinforce the multilateral trade system, arguing that bilateral discussions with the United States alone are insufficient to address deep-seated structural challenges in international commerce.

Multilateralism as a Pillar of China’s Trade Strategy

China’s mission to the WTO emphasized that while bilateral dialogues with the United States “may sometimes work,” only a rules-based, multilateral framework can deliver lasting solutions to mounting trade frictions. “An open, stable and rules-based international economic and trade order serves the common interests of all,” the mission asserted, urging immediate steps to de-escalate unilateral tariff measures and reinforce WTO disciplines.

This stance marks a deliberate shift away from the high-profile, often tense, bilateral trade talks that have characterized Sino-American economic relations over the past two years. By redirecting attention to multilateral forums, Beijing aims to rally like-minded nations around its narrative that global trade can only thrive under an inclusive, diversified governance model—one that dilutes the influence of any single superpower and reduces the risk of coercive tactics.

Since U.S. President Donald Trump first announced sweeping tariffs on Chinese imports in 2018, bilateral negotiations have produced intermittent truces but little structural change. The imposition of 25% duties on $250 billion worth of goods, and China’s retaliatory levies on U.S. products, underscored the limits of bilateral bargaining. Analysts note that Washington’s dual-window strategy—alternating between dialogue and punitive measures—has left Beijing wary of investing heavily in a process that can be unraveled by capricious policy shifts.

In contrast, multilateralism offers China a way to circumvent direct U.S. pressure by binding all WTO members to shared rules. At the Geneva meeting, China pointed out that “reciprocal tariffs” are akin to “adding fuel to the fire,” raising import costs and disrupting global supply chains. By rallying other WTO members to condemn unilateral measures, Beijing intends to frame U.S. tariff threats as an affront not just to China, but to the entire trading community.

Leveraging Regional Trade Agreements

China’s push for multilateralism also manifests domestically through its leadership in regional economic blocs. The conclusion of the Regional Comprehensive Economic Partnership (RCEP) at the end of 2020, linking China with 14 Asia-Pacific economies, exemplifies this strategy. Covering nearly a third of global GDP, RCEP empowers Beijing to diversify export markets, bolster supply chains, and lessen dependence on the U.S. consumer market.

Similarly, China’s expressed interest in joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) underscores its ambition to participate in high-standard trade frameworks. By seeking entry, China signals to international partners that it is willing to meet stringent regulatory norms—thereby countering narratives that label it a “non-market economy.”

“Participating in RCEP and potentially CPTPP allows China to insulate itself from U.S.-led economic blockades. It’s a classic diversification play,” said Li Mingjiang, a professor of international relations at RSIS in Singapore. “By anchoring its trade ties in broader, rules-based frameworks, China aims to project a more stable, predictable trade environment, which is attractive to both domestic and foreign investors.”

Beyond formal trade pacts, China has been active in cultivating a network of development institutions and forums—most notably the Asian Infrastructure Investment Bank (AIIB) and the Belt and Road Initiative (BRI). Although not strictly focused on trade rules, these platforms foster economic interdependence and grant China greater influence over infrastructure and regulatory standards across Eurasia, Africa, and Latin America.

At the WTO meeting, Chinese delegates stressed that these development channels complement multilateral trade efforts by generating growth in emerging markets and reinforcing collective economic resilience. They contended that such synergy is critical for creating new demand for Chinese goods and services, especially as bilateral commerce with the U.S. remains volatile.

“China’s BRI partners now account for a substantial portion of its non-U.S. export volume,” noted Shen Jiru, a trade economist based in Beijing. “By deepening ties in Africa, Southeast Asia, and Europe, China hedges against fluctuations in U.S. demand, making multilateral and regional cooperation indispensable.”

Countering U.S. Critiques

While Beijing touts multilateralism, the United States has criticized the WTO for failing to curb non-market practices, particularly those associated with China, including state subsidies, forced technology transfers, and alleged intellectual property infringements. In Geneva, the U.S. call for WTO reform echoed Washington’s long-standing argument that the organization requires stricter enforcement mechanisms and transparency measures.

Chinese officials, however, argue that wholesale restructuring of the WTO is unnecessary and that targeted improvements can enhance its capacity to handle contemporary challenges. They propose enhancing dispute resolution timelines and increasing support for capacity building in developing nations—measures that they say will strengthen the organization’s credibility without undermining its foundational principles.

Domestically, the Chinese leadership faces the dual challenge of maintaining growth momentum and managing public perceptions of foreign hostility. Surveys conducted by state-affiliated research institutes indicate that Chinese manufacturers and exporters view multilateral pathways as a buffer against sudden U.S. tariffs. By projecting multilateralism as the logical alternative to unpredictable bilateral bargaining, the government can reassure businesses that it is working to stabilize trade conditions.

Moreover, Beijing’s emphasis on multilateral engagement serves to rally nationalistic sentiment by framing the country as a champion of globalization against unilateral coercion. State media have highlighted China’s leadership role in RCEP and AIIB as evidence of its commitment to an inclusive global order—contrasting starkly with what they depict as U.S. protectionism.

China’s pivot to multilateralism arrives at a precarious juncture for global trade. The WTO’s appeals court has been rendered inoperative by U.S. blocking of appointments, undermining the dispute settlement mechanism. Growing protests against globalization in Europe and the rise of populist leaders have further eroded support for open trade regimes.

China’s proposal at the WTO meeting to stabilize trade relations under existing rules reflects its broader aim to revitalize the multilateral system. By advocating for collective action against protectionism—rather than relying on ad hoc bilateral agreements—Beijing seeks to reassure smaller economies that their voices will be heard and their interests protected.

“Without the WTO’s grievance procedures functioning properly, there is a real risk of cascading retaliation,” warned Ana Paula Dourado, a WTO expert based in Lisbon. “China’s efforts to restore faith in the multilateral process could prove pivotal in averting a slide into widespread trade fragmentation.”

Looking forward, China has signaled interest in expanding multilateral cooperation beyond traditional goods trade. At recent forums, Chinese delegates have advocated harmonizing digital trade standards, e-commerce regulations, and green energy frameworks at multilateral venues. By doing so, Beijing aims to shape emerging rules in sectors where it already enjoys competitive advantages.

In the clean energy sphere, China is the world’s largest manufacturer of solar panels and electric vehicles. Aligning global standards on renewable technologies through multilateral channels could secure markets for these industries and align with domestic climate goals. Similarly, multilateral discussions on data flows and cybersecurity present opportunities for China to advance its digital economy while mitigating concerns over cross-border data governance.

China’s strategic turn toward multilateralism rather than exclusive reliance on U.S. trade talks reflects a nuanced calculation: while bilateral negotiations offer short-term relief, they are vulnerable to political swings. By embedding its economic agenda within multilateral structures—whether through WTO reform, RCEP integration, or regional development initiatives—Beijing seeks a more resilient platform to navigate global uncertainties.

This approach also allows China to portray itself as a responsible stakeholder committed to a stable, rules-based order, even as friction with the United States persists. As the world grapples with the fallout from the COVID-19 pandemic, climate change, and shifting geopolitical alliances, China’s push for multilateral collaboration could play a defining role in shaping the future contours of global trade.

(Adapted from USNews.com)

Categories: Economy & Finance, Geopolitics, Regulations & Legal, Strategy