Then Chinese Finance Minister Lou Jiwei attends a press conference on the sidelines of the annual parliamentary session in Beijing, March 7, 2016. (CHEN JUNQIN / XINHUA)

BEIJING - A senior Chinese political advisor said protectionism by the United States has not only failed to help its manufacturing industry recover, but also violated WTO rules, aggravating the international trade situation.

Lou Jiwei, standing committee member and chairman of the Foreign Affairs Committee of the Chinese People's Political Consultative Conference (CPPCC) National Committee, made the remarks in an inclusive interview with Xinhua Tuesday.

Lou said the US "declining manufacturing sector" and "loss of absolute advantage in its economic standing" are rooted in its own structural problems

China has become the world's second largest economy over the past over 40 years of reform and opening up, contributing more than 30 percent to global economic growth for several consecutive years. However, some US politicians accused China of "taking away" the US industrial chain, causing huge job losses in the country.

"This is a gross lack of common sense," said Lou, adding that the US "declining manufacturing sector" and "loss of absolute advantage in its economic standing" as claimed by itself are rooted in its own structural problems.

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Lou said structural problems in US economic development have a long history.

As early as the 1970s, heavy industry and manufacturing centers such as Pittsburgh and Detroit in the United States experienced large-scale recession, decline in economic growth, and a rise in unemployment, becoming the so-called "Rust Belt." Then, China was yet to open up.

"In the following years, there was a massive transfer of traditional US manufacturing industries abroad, an objective necessity that had nothing to do with China," Lou said.

Noting the United States has the advantage of being an international currency issuer, Lou said tax revenues in the country are relatively low, so long-term financial deficit must be balanced by issuing a large number of bonds. Low savings rate and inadequate domestic investment will inevitably lead to a huge trade deficit and massive outflow of US dollars.

 The decline of traditional manufacturing industry in the United States was further aggravated by the development of the finance-centric service industry

At the same time, an active financial market has caused a large flow of funds into the US financial industry and the purchase of US bonds, forming a cycle of inflow and outflow of the US dollar. The decline of traditional manufacturing industry in the United States was further aggravated by the development of the finance-centric service industry.

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With sustainable long-term financial and trade deficit, American people enjoy a higher standard of living, but certain US politicians still say they are at a disadvantage. "The United States wants the status of a currency issuer, and on the other hand seeks balanced trade, which lacks economic common sense," Lou said.

Noting the current US administration has created protectionist barriers by clamoring for "America First," Lou said if all countries shut their doors and impose a blockade, multilateralism will collapse, then plunging the world into chaos and crisis.

The global governance system has indeed exposed weaknesses that need to be addressed, Lou said, adding that in the face of an anti-globalization trend, China has responded by continuing to deepen reform and opening up and bringing benefits to the whole world.

"China is ready to work with other countries to actively participate in the reform and building up of the global governance system and jointly seek a more just and reasonable international governance structure," he said.