Global Trade Protection China

The economic crisis has caused a sharp drop in international trade. WTO Director-General Pascal Lamy predicts that global trade volume will decrease by 9% in 2009. Under the crisis, countries adopt national economic policies to protect their economic interests. The United States took the lead in implementing the "Buy American Goods" campaign, and government procurement only purchased US goods. In May 2009, US Customs used security reasons as an excuse to suddenly limit the import of spring knives, which is in sharp contrast to the US domestic law, which is very loose in gunwork.

Although the leaders’ declarations of major countries do not adopt trade protectionism, they still adopt various disguised protection measures. At the G20 summit in London in April 2009, the leaders of the United States and major European Union countries called for "co-resistance of trade protectionism." At the NAFTA summit in August 2009, the leaders of the United States, Canada, and Mexico re-emphasized the dangers of trade protectionism. At the G20 Summit in Pittsburgh in October 2009, Chinese and American leaders once again emphasized the need to avoid protectionism. However, a series of trade frictions between China and the United States and the European Union have escalated sharply this year, confirming that they have returned to do so. The Doha round of negotiations, which lasted for eight years in the WTO, has stalled. The apparent reason is that the United States and India are divided on agricultural trade policies, but the essence is that the major countries such as the United States and the European Union lack the support of the domestic political atmosphere.

A new round of trade protection
The new round of trade protectionism is manifested in the use of anti-dumping, countervailing and special safeguards without violating trade agreements. In the first three quarters of this year, 19 countries initiated 88 trade remedy investigations on Chinese products. Among them, 57 were anti-dumping, 9 were countervailing, 15 were safeguards, and 7 were special insurance. The total amount involved was 10.2 billion US dollars, up 29% and 125% respectively.

The US tire special protection case in September, using the 402 clause, imposed a special tariff of 55% (diluted years) on China’s export of secondary tires, and exported 46 million US$1.7 billion worth of Chinese tires to the Pacific Ocean. bottom. In May of this year, the US Department of Commerce decided to impose an anti-dumping tax order on China's circular carbon line pipe. China's steel enterprises exporting ring carbon line pipes will be subject to an anti-dumping duty of up to 101.1%.

In June, the manufacturer of Woven Electric Blankets applied to the US Department of Commerce and the International Trade Commission for an anti-dumping investigation on imported woven electric blanket products originating in China. In September, the US International Trade Court ruled that the US Diamond Saw Blade Manufacturers Union filed a lawsuit requesting the US Department of Commerce to issue an anti-dumping tax order to impose import tariff deposits on diamond saw blades and their components originating in China and South Korea. In November, the US International Trade Commission ruled that anti-dumping and countervailing duties “double-reverse” tariffs were imposed on coated paper imported from China and Indonesia, potassium pyrophosphate imported from China, potassium dihydrogen phosphate and dipotassium hydrogen phosphate. In November, the United States imposed preliminary anti-dumping duties ranging from 36.53% to 99.14% on China's oil well pipes exported to the United States. This was based on the countervailing duty of 10.69%~30.69% on the steel products exported by China by the US Department of Commerce in September. Additional levy.

The EU is not willing to lag behind and implements a series of "double-reverse" cases against China. On March 18, the European Commission issued a notice stating that, based on the application of the British Smiths Company, it was decided by law to conduct anti-dumping investigations on container scanners imported from China. . EU member states decided in June that a formal anti-dumping duty will be imposed on Metal Wire rods produced in China from August this year for a period of five years. The European Commission announced in August that it launched an anti-dumping investigation against sodium gluconate imported from China. In October, the EU Council of Ministers issued a notice stating that China's seamless steel pipes exported to Europe pose a threat to the EU industry and decided to impose a final anti-dumping duty of 17.7%-39.2%.

Trade protectionism has spread to developing countries. In January, South Africa made an anti-dumping review of the Chinese steel strands, ropes and cables. The anti-dumping tax rate of China's steel strands and cables was 133.65%, and the anti-dumping duty rate of steel strands was 113.25%. In July, Argentina conducted an anti-dumping investigation against a manual kitchen igniter originating in China. In March, the Peruvian state decided to impose a temporary anti-dumping duty of 0.31 US dollars/double on casual shoes and sports shoes imported from China as textile materials. In July, Peru decided to continue to impose anti-dumping duties on three kinds of surfboards imported from China. , the term is 3 years. In June, Brazil imposed anti-dumping duties on passenger cars and truck tires imported from China. In the future, anti-dumping duties on light car tires imported from China may be imposed.

India has initiated five rounds of Barium Carbonate, Penicillin-Gand its Salts, and 6-APA and resin (Polyvinyl Chloride Paste/Emulsion Resin) native to China. Anti-dumping investigation; in May India decided to impose anti-dumping duties on compact fluorescent lamps originating in China, Vietnam and Sri Lanka.

The game between China and the United States
Sino-US trade will face long-term friction, but both governments are determined to limit friction in the economic field. China’s share of foreign trade exports rose from 20% in 2001 to 36% in 2007. The United States is China’s largest exporter except the EU as a whole, and China is the largest importer of the United States. The long-term trade surplus with the United States has caused nearly $800 billion in foreign exchange reserves. The large amount of US Treasury bonds held by China has become a domestic political issue. Both the Chinese and American governments are aware that the long-term trade surplus is a "politically unsustainable" problem, and domestic politics cannot tolerate the deterioration of this situation. In particular, the unemployment rate of up to 10% in the United States has put the Obama administration under enormous pressure from the left-wing union and the right-wing Conservative Party. The two governments do not want trade frictions to affect diplomatic and political relations.

The solution to the imbalance in Sino-US trade lies in the adjustment of China's export trade structure and the relaxation of US export technology restrictions. The added value of exports to the United States is not large, and more than one-half of the exports of some provinces belong to foreign processing trade. US companies investing in China are sold back to the United States, such as some secondary tires. The added value of this part of China's exports to China is simple labor processing. The Chinese interests are not as big as they might think. A large part of exports to the United States belongs to Japan, South Korea, Taiwan and other Asian companies investing in China, and the products are sold to the United States. The added value of this export to China is not large. A large part of the export to the United States is a labor-intensive product of the private sector, and the added value is not large. China is determined to upgrade its industry and hopes to produce high-tech export products, but it is not smooth. Guangdong has a policy of “cage for birds”, but the cage has been vacated, but the new birds have not come, and the economy has been in a depression.

The main idea of ​​the United States to solve the Sino-US trade issue is to restrict imports rather than expand exports to China. Strike China's exports to the United States through various trade barriers. Increase the cost of US companies' offshoring, stop the flow of employment opportunities to China, and protect domestic manufacturing. Compress consumer credit, change the culture of borrowing and consumption, and reduce the demand for Chinese products.

China’s position on the United States is that expanding exports to China is the key to resolving trade imbalances, and the key to expanding exports to China is to relax export technology controls. China has a large import demand for high-tech in the United States, but it is subject to export technology controls. The degree of US control over China’s export controls depends on the improvement of Sino-US relations, but it has long been affected by the inertia of the Cold War mentality. Although Sino-US relations have improved greatly in the past 10 years, the policy of export control to China has remained basically unchanged.

The settlement of Sino-US trade will take time. Obama’s visit to China will not have a substantial breakthrough in trade issues. There are structural problems in Sino-US trade, involving adjustments in product and industrial structure, and the time required for resolution. A large part of the export products to the United States belong to US companies and involve the interests of US multinational companies. The relaxation of US export technology restrictions requires the support of domestic political forces. The key is the improvement of Sino-US relations. The international interest of the two countries is constantly exaggerated, which also takes time. The right-wing conservative forces in the United States originate from ideology and have always been hostile to China. The relaxation of export restrictions has political pressure from Congress. When Obama visits China, trade is only one of the topics. There will be no substantive breakthroughs. The future of Sino-US trade will be frictional and the "double opposition" will continue; but this will not hinder the improvement of Sino-US diplomatic relations.
 

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