Wang Xinkui: Developed Countries Are Building New Trade Rules Through Carbon Taxes.

Wang Xinkui, vice chairman of the National Federation of industry and Commerce and vice chairman of the CPPCC Shanghai Municipal Committee, delivered the keynote speech at the forum. Wang Xinkui said that as the advantages of developed countries in the manufacturing sector gradually disappeared, the developed countries passed

The following is a pcript of Wang Xinkui's speech:

Wang Xinkui: in 20 minutes, we should talk about such topics. According to the requirements of Xiaolong, we should not talk empty words or empty words, and go straight to the theme.

First, look at the global structural contradictions from this financial crisis.

I think the judgement on this issue is very important. I think it is related to the whole economic development strategy of our country for a long time.

The problem is not clear enough and there is no right strategy.

Not only during the "12th Five-Year" period.

How do I judge?

This global financial crisis is a result or a representation.

The main reasons are two.

One is high-speed in the past 20 years.

First, we must talk about controllable trade protectionism.

At present, Sino US trade relations have become the benchmark of global economic structural adjustment under the controllable trade protectionism that the whole world is concerned about. Now the Sino US strategic dialogue has gradually replaced the Doha negotiation of the changeable trading system, and has become the object of global concern.

There are many substantive commitments and measures taken in the Sino US trade dialogue, which in fact directly affect global trade.

What is the benchmark of global economic structural adjustment under controlled trade protectionism?

At present, how to solve this problem has become the focus of global attention. The result of this event may be related to whether the phenomenon of trade protectionism can continue to develop in a controllable direction.

Let us recall that in 04 years, Canada carried out the first merger investigation of anti-dumping and countervailing measures against China.

In the 06 year, the United States started to start, mainly copper foil.

In the 07 year, the merger investigation was referred to the WTO dispute settlement mechanism and appealed to the US Trade Court.

In 2010, the European Union started to launch a countervailing investigation on China's copper coated paper. We know that the EU has never conducted countervailing investigations against us. This is the first time it has been launched.

What is the current situation? What are the characteristics of the combined investigation conducted by the US team? 1, the merger investigation of anti-dumping and countervailing measures.

2, the rate of countervailing duty is extremely high. Punitive tax rate has been over 615.92%, 3 and the speed of verdict has been accelerated for 07 years. It turned out to be 20 months, now in November.

4, the implementation rate of countervailing is high, 59% in the world, almost 80% in China, and almost every case is decided.

For example, when Canada made a survey on our wooden household case, although the investigation was very lively, it did not implement it at last. Now it is different. 80% has been implemented, and the wind is spreading, and the whole world is launching countervailing duty against China.

The main trade partners have not described the subsidy trend in China, and what is the subsidy in our original treaty.

Generally speaking, there are four characteristics: 1, policy, such as five year planning and industry / Industrial Park policy.

Now the policies of the development zones, including the policies of the central and state-level development zones, are likely to be finally recognized as subsidy policies.

2, institutional, the recent controversy about public institutions, and now gradually tend to banks belong to public institutions, so interest rates with subsidized nature.

For example, the external benchmark is not included in the subsidy. Now the price and exchange rate of raw materials are also included in the scope of subsidies.

Therefore, the issue of the RMB exchange rate, the Americans may not be directly entangled with you on the exchange rate, the exchange rate will be included in the scope of subsidies.

What about the price? The price of raw materials and raw materials are beginning to come in.

For example, if your electricity price is distorted, the raw materials produced by electricity are extremely low, and the products you produce at this price are subsidized.

3, specificity.

In the past, the government's direct financial subsidies were concerned, and now it is concerned about non specific tax preferences.

Now they have submitted a list to China. There are more than 4000 local governments with various preferential documents, most of which involve tax preferences.

4, the original focus on subsidies implemented by the central government is now increasingly concerned about subsidies implemented by local governments.

This time, the trade volume we selected is not very big, because it is not a big deal. We chose this case to tell.

But the ruling is benchmarked, and if the ruling is made, other countries in the world will do countervailing duty against China.

If WTO's ruling says that the double counter does not violate the WTO principle, it is virtually equivalent to overturning the decision of the federal court. We will start another round of judicial proceedings.

After paying attention to the Copenhagen conference, we paid attention to the issue of carbon tax.

In fact, carbon tax is building a new trade rule.

As we all know, the developed countries have the competitive advantage of the manufacturing industry, and have constructed the trade rule orientation marked by reducing tariff and non-tariff trade barriers.

At the beginning of the European Union and the United States plus Japan, they had an absolute advantage in the global trade in manufactured goods, when they led the rulemaking direction to reduce tariffs and non-tariff barriers.

By the middle of 80s, the advantages of developed countries in manufacturing and manufactured goods were gradually disappearing. In fact, developed countries and developing countries made a deal. Developing countries promised to open trade in services.

One is that the market for services in developing countries is not as big as they foresaw, nor is it as fast as they foresaw.

Second, the service trade market in developing countries has not really opened up.

One reason is that the interests of developing countries are related to one another. Another important reason is that the negotiations on service trade are not mature. Now, many principles of service trade negotiations refer to the principle of trade in goods and can not solve the problem of opening up trade in services.

At present, the developed countries have an advantage in carbon tax. They have an advantage over the integration and R & D capabilities of equipment, especially their right to speak.

The next step is to change these competitive rules through these advantages, which is the trend of the next step.

When Lamy came to Shanghai to take part in the world's honor day, we exchanged views on this issue for the two time.

It seems that WTO itself can not avoid two problems, one is the reform of trade statistics, and the other is how to adapt to the issue of trade and climate change.

This time he chose the topic of trade and city, and launched a 2010 World Trade release ceremony in Shanghai. The core content is trade and resources, in fact, trade and environment, many of which are Chinese names.

The leaders of the Ministry of commerce did not come. The Secretary of the Ministry of commerce did not come because their problems were against us, and I was the highest representative.

But we can also see the new trend of the changing trade in the future and the pressure we will face.

This process is a long term country. Under controlled trade protectionism, Global trade will reach a relatively long buffer period. What will happen during this buffer period? One is the continuous carbon emission standard and carbon tax, which will accelerate the pfer of high carbon manufacturing in developed countries to developing countries.

Recently, entrusted by the Ministry of Commerce, we analyzed the global trade flow from the whole industrial chain, according to the longest tax value, according to the energy conservation standard and energy directive of the European Union, and made some calculations with the model. We found that such an international division of labor system was gradually formed.

Most of the solar energy production lines with high energy consumption and high carbon emissions have been pferred to China. However, 98% of our components were exported to them in just six years.

Other industries may be such a trend, which is a matter to be concerned about.

Second, carbon emission standards, carbon tax and carbon quota rules are all in the hands of developed countries, which may form new trade barriers.

Carbon tax is not a tariff. To his domestic market, according to the principle of national treatment, it is necessary to calculate the amount of your carbon emissions. This amount will be taxed as a result. This will form a new trade barrier. It may also make part of the manufacturing industry reflow from developing countries to developed countries, which depends on how to arrange carbon quotas.

The third is low carbon technology, the competitive advantage of equipment and services has increased the export of technology and goods from low carbon countries to high carbon countries, and this trend is strengthening.

Finally, I have three questions that we need to think about.

Now it has actually begun.

1, should we continue and accelerate the reform of the market-oriented economy? Our competitive edge in the service sector, our future trade and resources and environment, and our competitive edge in this regard have not yet been established.

If we rely solely on the advantages of trade in manufacturing and manufactured goods, this is not acceptable.

Should we continue to put reform first? This is a question everyone should consider.

2, should we maintain the power of WTO's changing trading system? This is not verbal. We speak in full defence, but whether you are willing to pay the price that suits your current trade status is not yet resolved.

Our maintenance of the changeable trading system is actually the greatest national interest, but many people have not reached such a recognition.

It is almost impossible to negotiate at a real cost.

3, we need to rethink how to establish new competitive advantages in trade rather than complacent in the fact that we are still at the low end of the trade in finished goods, as we have just mentioned by Xiaolong. These three problems are very important for me to discuss and hope to arouse the attention of all.