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    Chinese Products Encounter A New Round Of International Trade Friction

    2010/10/19 13:01:00 54

    Chinese Products

    Act as

    trade friction

    The biggest victims of China's trade protectionism is not as expected, but as the international financial crisis has subsided, it has become increasingly fierce.

    China's trade friction has spread from low end products to high-tech products, spreading from developed countries to developing countries, spreading from product level to industry and policy level, and there are some new trends worthy of vigilance.

    At the 108th Canton Fair, many foreign trade enterprises are worried about the new round of trade friction, and begin early warning and strengthen prevention.


    High tech products have also been investigated from the low end to the high end.


    In September 16th,

    European Union

    The Committee has launched a countervailing investigation on China's data cards, involving an amount of about $4 billion 100 million. The case has not only become the largest trade remedy investigation yet, but also the first time that such high-tech electronic products have appeared in China's trade frictions.


    Since the beginning of this year, there has been a noteworthy sign in the case of trade frictions - the trade relief survey has begun to expand rapidly from low value-added products, such as textiles and light industrial products, to high value-added high-tech products such as Electromechanical, medical and health products, chemical products, microelectronics, food and animal products.


    For a long time, low cost, low price and low technology content have always been the main reasons for the frequent trade remedy investigation of China's export products, and improving the added value and technology content of products is also a magic weapon for many enterprises to resist trade conflicts.

    Why are these high-end products "doomed" in the new round of trade frictions?


    Xiao Yaofei, deputy director of the international economic and Trade Research Center of Guangdong University of Foreign Studies, said that data cards and other high-tech products are constantly upgrading. Chinese products have promoted technological progress and created new markets, but also to the European Union.

    Consumer

    It brings real benefits.

    However, the EU only abuses trade remedy measures to protect the interests of an enterprise in a member state.

    This highlights the protectionism of the EU in the post crisis era, which is typical of the abuse of rules.


    After the international financial crisis, the developed countries proposed to revive the manufacturing industry. Some countries also indicated that they would ease the domestic trade deficit by expanding exports, which made China's high-end products in the face of direct competition from developed countries and became a new field of trade protection.


    "We should also see that China's trade friction from the low end to the high-end is also an inevitable process.

    From another point of view, this shows that more and more Chinese enterprises are changing their way of development to make their high-tech products more and more competitive internationally.

    At the Canton Fair, Xiao Youyuan, general manager of GREE electric overseas sales company, told reporters that the company has noticed the trend of trade friction to high-end. In the new product development of GREE electric appliances, the company began to pay attention to advance preparation for the development direction of the industry, so as to cope with the possible trade barriers in the future.


    It is understood that since 1995, China has been the biggest victim of anti-dumping in the world for 15 years in a row.

    With the outbreak of the financial crisis, China's export products have become the target of public criticism.

    In 2010, when the crisis weakened and the economy recovered, the situation of China's export products facing such a siege has not been alleviated, and the situation of trade frictions is more complicated.


    According to the Ministry of Commerce, in August of this year, China suffered 48 cases of trade remedy investigations from 17 countries and regions, and the total amount involved was 6 billion 480 million US dollars.

    Since the beginning of this year, the United States has launched 337 surveys of 13 products, an increase of 62.5% over last year, and the number of cases is still rising.


    The latest report from the world bank shows that although China's exports are less than 10% of the world's total, 47% of the world's newly launched trade relief surveys and 82% of the completed cases are targeted at China.

    In addition to the trade remedy survey, some countries have directly implemented trade protection measures against Chinese goods. In the 15 new trade protection policies launched this year, 10 of China's commodities accounted for 67%.


    What is particularly striking is that in addition to the traditional anti-dumping investigations in the US and Europe, trade protection measures from developing countries have also been launched. For example, Argentina has taken anti-dumping measures against the footwear originating in China. India has made anti-dumping arbitration on two ethyl thiophosphoryl chloride used in pesticide production in China. Mexico has continued to levy a 21% year anti-dumping duty on the high carbon ferromanganese originating in China. Columbia decided to impose a provisional anti-dumping duty on the juice extractor originating in China.


    Zhou Xiaoyan, director of the Ministry of Commerce's import and Export Fair Trade Bureau, believes that the recovery of the world economy is slow and tortuous. The competition among countries to protect the domestic market and compete for the international market will become increasingly fierce. Meanwhile, as more and more developing countries integrate into the economic globalization and participate in the international division of labor, the homogeneity of industries in some industries and developing countries will become stronger and the competition will expand.


    The contest behind disputes escalate trade friction and affects industries and systems.


    In October 15th, the US Treasury issued a statement announcing that the latest international economic and exchange rate policy report, which was scheduled to be submitted to parliament on that day, was postponed and the risk of "exchange rate war" between China and the United States was postponed.

    But for China's foreign trade enterprises, the exchange rate friction that may happen at any time is still overhanging.


    "Although the United States postponed the recognition of China as the so-called" currency manipulator ", it should be noted that the issue of exchange rate has become a political tool for a few countries and is likely to pick up again at any time.

    Wu Mingang, general manager of the new Pearl Ceramic Group International Business Division, said: "exchange rate war" is only a means to ease the structural contradictions of the domestic economy through trade war, but ignore the interests of other countries.


    Research from the Ministry of Commerce's industry injury investigation bureau shows that trade friction has begun to spread deeper into industries and systems.

    With the upgrading of China's export commodity structure and the rapid development of foreign trade, the field of trade protectionism in China is expanding from trade in goods to exchange rate, service trade, intellectual property and investment. The dispute over trade friction has also expanded from single product to the whole industry, and finally to the policy and institutional level.

    The foreign countervailing investigation cases encountered in China involve more than 150 central and local economic policies such as tax, investment, trade, industry, land, state owned enterprise reform and so on.


    Chen Lipeng, director of the Fair Trade Bureau of the Guangdong Provincial Department of foreign trade and economic cooperation for a long time, believes that the development of trade frictions has not only directly affected the international competitiveness of our steel, petrochemical, textile and paper industries, but also indirectly affected the stability and sustainability of our macroeconomic policies.


    "After the financial crisis, the global economy is facing further readjustment. It will go through a long period of low growth. All countries pay more attention to the balanced development both inside and outside the country, and seek new competitive advantages through structural adjustment.

    Developed countries demand "global economic rebalancing", so China's manufacturing exports will remain the main objective of global protectionism.

    It can be said that in the post crisis era, China's trade frictions will be normalized, complicated and diversified.

    Yang Yi, director of the Ministry of Commerce's industry damage investigation bureau, said.


    "In the process of economic rise of a country, there will always be more trade frictions with related countries. As in the 80s of last century, Japan has had a lot of trade conflicts with the United States and the European Community in the process of economic rise."

    Chang Dong, President of international marketing department of Konka Group, said: "in the face of rising trade friction, we should attach importance to the government level. On the other hand, enterprises should also be vigilant and enhance their defenses."

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