Trade Barriers Continue To Escalate. Next Year, China Will Have More Trade Frictions.

< p > September 16th, PWC reported that under the background of Increasing Protectionism of international trade, China became a frequent occurrence of international trade frictions.

According to the PWC international trade service team, because of the uncertainty of the global economic recovery prospects, the international trade frictions against China will continue to heat up in the second half of 2013 to 2014. Among them, the number of trade relief cases in China and emerging market countries will increase significantly, and the amount involved will also rise again.

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< p > trade relations between China and the United States and the European Union have been developing in friction and twists and turns. During the post crisis period, the trade war has been increasing, resulting in frequent anti-dumping investigations and trade barriers.

According to statistics from the Ministry of Commerce, a total of 21 countries launched 77 trade remedy measures against China in 2012, involving a total of 27 billion 700 million dollars, up 11.6% and 369% respectively over the same period last year.

At the same time, trade frictions between China and developing countries have gradually emerged in recent years. 70.1% of the trade remedy cases in 2012 were related to developing countries and emerging markets.

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< p > "whether developed countries or emerging markets, countries adopt actions to restrict imports or encourage their exports, such protectionist policies are often the most serious in the economic downturn."

"In the face of trade disputes, Chinese manufacturers and exporters need to adjust their mindset to respond positively to the survey, and re-examine their business models and supply chain structure to find a breakthrough strategy," said Pan Di, partner of PWC China International Trade Service.

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"P >" Pan Di Wen added that trade protectionism not only causes market barriers and administrative disturbance, but also leads to profit erosion.

Anti dumping and countervailing measures are affecting China's photovoltaic and telecommunications industries, but the impact of trade protectionism has far covered other industries, and even all overseas markets.

According to PWC's practical experience, the difficulties faced by Chinese manufacturers and exporters in the field of trade remedy investigation are concentrated on two aspects: the comprehensiveness and accuracy of the questionnaire survey within a limited time, and the assurance of on-site verification preparations.

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< p > in practice, Chinese companies are required to fill in the market economy status questionnaire or anti-dumping investigation questionnaire which is required by foreign governments. They involve a lot of detailed financial data, which need to be fully discussed, adjusted, assessed and supported by original documents.

If the data in each form are inconsistent before and after, and can not explain the reasons for the inconsistency or fail to effectively check, the relevant government may consider the data unreliable and do not accept the data, thus affecting the market economy status and the lower dumping rate.

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< p > another difficulty faced by Chinese companies is on-site verification.

Once the enterprises are verified by the questionnaires, foreign government officials will verify the correctness of the financial data provided by the companies concerned, whether they reflect the real sales and whether the cost data reflect the operation of the enterprises.

It is very important to check the source of data and the method of collection before verification, and to verify the reasonable interpretation of inconsistencies at the scene of verification.

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