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Position and Viewpoints of Chinese Government Regarding Trade Protectionism
1. The Chinese government firmly opposes trade protectionism
Trade protectionist measures have seriously destabilized international trade. Trade protection, with state interventions in trade conduct and competitive constraints on foreign goods, services and other factors in the domestic market at its core, compares in effect to “pursuing self interest at the expense of your neighbors”, an act that has no gains but every harm to others and is a hindrance to the recovery and growth of the world economy. On November 15th ,2008, the leaders’ declaration from the G20 Summit on Financial Markets and the World Economy made a clear call to “underscore the importance of rejecting protectionism and not turning inward in times of financial uncertainty…refrain from raising new barriers to investment or to trade in goods and services”. The APEC Leader’s Summit that followed on November 22nd also delivered a statement on the world economy to counter all forms of protectionism.
As a responsible member of the WTO, China remains an advocate of trade liberalization, an opponent of trade protectionist actions, and a supporter for the proper settlement of trade frictions through international trade and economic cooperation of all forms. China understand that the facilities introduced by some countries are for the purpose of mitigating the exposures of the global financial crisis to their economy and domestic industries. In fact, the Chinese government is facing the same challenge, namely, to deal with the impact inflicted by the financial shock on its own economy and industries. Nonetheless, the Chinese government acts on the principle that any course of action should not undercut or limit normal trade. Otherwise, it will work to the contrary, harming the interests of our trading partners and eventually hampering the growth of domestic industries and the enhancement of welfare for our citizens. In the face of emerging disputes and frictions, all countries should proceed from maintaining and stabilizing the global trade atmosphere, follow the principles of development, equality and mutual benefit, and accommodate each other’s concerns through equal-footed consultation toward win-win results.
2. The Chinese government stands ready to work with other countries to properly resolve trade frictions through partnership and consultation
As a result of its foreign trade boom, China’s trade frictions with both developed and developing countries have increased in the past few years. However, it should be noted that complementarity and reciprocity still constitute the mainstream underlining China’s foreign trade and economic relations. We believe that conflicts and frictions alone are not fearful. The key lies in the manner in which such frictions are resolved. There is a need for both sides to step up communications and consultations and to treat each other in sincerity and openness, all in an effort to expanding the area where interests converge and properly resolve conflicts and divergences. All members should implement trade remedies by following the rules. And we are firmly opposed to the practice by certain members of the arbitrary use of trade remedies or the adoption of other trade restrictions that violate WTO rules. We will express our concerns through representations and consultations, requesting the members concerned to correct their wrong practices and remove those unfair and unreasonable measures. If and when necessary, we will bring the rules-violating abusive practices to the WTO Dispute Settlement Mechanism.
The Chinese government upholds an open-up strategy that is mutually beneficial and win-for-all, accommodating the justified concerns of the others, developing countries in particular, while realizing our own development. We propose to properly address trade and economic frictions through consultations and coordination. The sustained growth of the Chinese economy and the constant expansion of the Chinese market are not only benefiting the Chinese people, but also binging huge business opportunities to the rest of the world. We welcome businesses from across the world to come and explore the Chinese market so as to share the fruits of China’s development. China’s development represents opportunities for and contributions to the world instead of posing threats. China is dedicating itself to the building of an international trading environment that is harmonious and orderly. And we are willing to pursue common progress with the rest of the world on the basis of mutual benefit and win for all. We will, at this special moment of financial crisis, vigorously engage in pragmatic cooperation with all other countries to weather the difficulties.
3. We encourage Chinese and foreign businesses to strengthen communications and cooperation in order to resolve their frictions.
We support Chinese enterprises to respond to trade dispute cases in accordance with the legal processes of the importing countries. Meanwhile, we encourage and support Chinese enterprises to step up communications and exchanges with incumbent industries of the importing countries, thus removing or reducing trade frictions through consultations and cooperation and achieving mutual benefit and win for all. Government on both sides need to build a platform for dialogue between the business communities, spurring and promoting business-to-business cooperation so as to realize mutual benefit and win-for-all. The Chinese government encourages Chinese chambers of commerce and industrial associations to set up dialogue and exchange mechanisms concerning key and sensitive products with their counterparts from China’s major trading partners, thus strengthening cooperation and resolving trade frictions through communications and consultations.
