China Made VS Trade Friction: A Solution

"This year, the central government will arrange technology expenditure of 113 billion 400 million yuan, an increase of 13 billion 400 million yuan over the previous year.

We should improve and implement the policy of supporting independent innovation, give full play to the role of enterprises as the main body of technological innovation, encourage and guide enterprises to increase R & D investment.

Premier Wen Jiabao's speech in the "government work report" became a hot topic for delegates and members during the two sessions.

How can we solve the situation of trade friction in China's manufacturing industry and promote enterprises to become the main body of independent innovation?

This is a difficult problem in the economic development of China.

The rapid development of "made in China" and "made in China" has broken the original international economic and trade pattern.

In some countries, economic nationalism and trade protectionism, which advocate national interests and oppose foreign capital invasion, are pointing to China.

From the 2005 textiles, 2006 shoes to 2007 steel, China's trade friction extends from the micro level of pure products and enterprises to the macro system and institutional level.

According to the statistics of Ministry of Commerce, China has been the world's largest number of anti-dumping investigations for 13 consecutive years (1995 -2007). For 6 consecutive years (2002 -2007), it has become the country with the largest number of intellectual property rights investigations in the United States. Currently, 1 / 3 of the world's anti-dumping and half of the US's 337 surveys are targeted at Chinese exports.

Technical trade measures, sanitary and phytosanitary measures have become a major obstacle to the export of Chinese products. Trade barriers such as intellectual property rights and social responsibilities have been increasing, and their forms are becoming increasingly diversified, integrated and hidden.

With the continuous high growth of China's foreign trade, some countries are not satisfied with anti-dumping measures to restrict China's exports, but rather focus on subsidies.

Countervailing has become a new hot spot in trade friction, and countervailing measures have become the top priority in dealing with trade frictions.

It is understood that since November 2006, the United States has launched 9 anti dumping and countervailing investigations in China. Canada has launched 6 anti-dumping investigations, countervailing investigations and 4 re investigations since 2004.

In an interview with China economic times, Li Ling, director of the Fair Trade Bureau of the Ministry of Commerce, pointed out: "the number of countervailing cases in China, the frequency of which is fast, the wide range of products involved and the great impact are rare in the history of Global trade and economics."

"Made in China" can not replace the spread of economic nationalism, which will drag down global economic growth.

According to expert analysis, the contribution rate of world trade to the economy over the past 30 years has reached over 20%.

If protectionism continues to spread, the world GDP growth rate will fall to 1% from 2011 to 2020.

In analyzing the current international economic and trade environment and fair trade situation in China, Li Ling has given two thought-provoking examples: one is Hongkong's Xinbao daily, "no" made in China "Americans can't live.

"The article" describes an American family of four who did not use Chinese goods in one year, resulting in major inconvenience and over budget expenditure, resulting in "material shortage" and mental distress.

The other is Marcos Gio, a columnist published in October 3, 2007 by columnist, Canada, who wrote a commentary on how the Chinese dragon brought prosperity to Canada. It points out that the Chinese cargo inflation in Canada is reduced by 0.1% per year, which is equivalent to billions of Canadian dollars, and that Canada should thank China for its rise.

"Inexpensive, small profits but quick turnover" has always been the way for Chinese enterprises to operate and is also an important reason for "made in China" abroad.

"Over a long period of time, many of China's products, especially low-end consumer goods, are competitive in the world, and the current trade surplus is long-term."

Li Ling told our reporter: "although we have adopted a series of regulatory policies and measures this year, the fundamental factors that cause China's surplus are still there.

In particular, the rapid release of huge capacity in recent years has not only formed a larger export capacity, but also has replaced imports in many fields; foreign demand for China's exports is still strong, and the high-tech equipment urgently needed by China is limited by developed countries, and it is difficult to expand imports.

In recent years, China has been actively carrying out trade frictions and has achieved remarkable results.

For example, in the 23 special safeguard investigations in China, 22 have won the lawsuit; in the US counterfoil case of coated paper, China negotiated separately under the bilateral and WTO framework, and finally the US side made a final ruling without damage. After negotiation, the EU anti-dumping period for Chinese leather shoes was reduced from 2 years to 5 years.

In the next period of time, China's trade frictions and contradictions will be more prominent.

In terms of specific responses, Li Ling made several suggestions to enterprises: in addition to understanding the relevant knowledge of the WTO rules and trade remedy investigation, establishing and improving the internal management mechanism and strengthening the discipline of industry, it is more important that the trade friction cases should not be viewed negatively, and it is desirable to sit back and take the initiative to respond.

Li Ling stressed that the most fundamental way to deal with trade frictions lies in the enterprises themselves. We should gradually enhance our ability to adapt to the international market, keep abreast of changes in the foreign market environment, and strive to improve product quality and added value, adjust product mix and enhance competitiveness.

In addition, we should pay attention to strategy in the choice of export market, and realize "product diversification" and "market diversification", and also reduce and disperse risks.

Trade friction is a normal development of the new international situation. It is a new challenge for China to fully participate in economic globalization.

For this challenge, Li Ling said: "we must firmly grasp the two main lines of properly dealing with trade frictions and prudently using trade remedy measures, earnestly strengthen bilateral exchanges, and lay stress on consolidating capacity building.

We have established the fair trade working mechanism of the Ministry of Commerce, the local commerce department, the intermediary organization and the related enterprises.

It is also understood that since 2004, New Zealand took the lead in recognizing China's market economy status, in 2007, 10 countries, including Norway, Zimbabwe and Switzerland, recognized China's market economy status. So far, 77 countries have recognized China as a full market economy.

From this we can see that the rules and regulations of Chinese enterprises responding to anti-dumping are gradually improving, and the image of reform and opening up has also been further improved internationally.

China's icebreaking trip to deal with trade frictions is a long way to go, but it is steadfast.