Beijing - Many Western politicians have accused China of
trade protectionism in recent months, sometimes with reason and
sometimes apparently seeking a convenient economic scapegoat.
Yet most Chinese economists see double standards in the West's
finger-pointing.
President Hu Jintao was expected to reiterate China's opposition
to protectionism and again champion developing nations when he
attends next week's dialogue between the Group of Eight (G8) and
emerging economies.
'The biggest issue (for China) is the protectionism in trade,'
Zhang Hanlin, director of the World Trade Organization (WTO)
Institute at Beijing's University of International Business and
Economics, told the German Press Agency dpa.
Zhang said he saw signs of abuse of the WTO's anti-dumping,
anti-subsidy and insurance regulations by the United States and the
European Union 'in all areas', but 'mainly in industrial products.'
In a policy speech in mid-June to the State Council, or cabinet,
Premier Wen Jiabao identified international trade protectionism as
one of the 'many uncertainties' threatening to undermine China's
economic recovery.
'Actually, after China joined the WTO in 2001, from 2002 to 2006
the US made the most appeals for anti-dumping and other issues,' said
Jin Fang, a senior researcher at the World Economic Institute under
the Shanghai Academy of Science.
'But after 2006, the EU had the loudest voice,' Jin told dpa.
'What's more, the EU puts much stress on environmental
protection,' she said, adding that to China that policy was
'protectionism with green clothes.'
WTO standards for safety and labour could also cause more trade
disputes between Western nations and China, Jin said.
'They should accept that Asian countries are still developing,'
she said.
Jin's and Zhang's remarks seem broadly in line with the
government's position and come as China faces a series of complaints
over its own trade practices.
The United States and the European Union filed complaints with the
WTO in late June over China's restrictions of exports and hoarding of
nine raw materials used by the steel, aluminium and chemical
industries.
'The Chinese restrictions on raw materials distort competition and
increase global prices, making things even more difficult for our
companies in this economic downturn,' EU Trade Commissioner Catherine
Ashton said.
But China responded by saying it imposed the limits on exports of
raw materials including bauxite, coke, magnesium, zinc and silicon to
'protect the environment and natural resources.'
In mid-June, China ordered local governments to buy products and
services from domestic firms where possible.
The central government justified the move by saying it was only
'levelling the playing field' after complaints that low tariffs for
some imports had favoured foreign firms in bidding for contracts
under a 4-trillion-yuan (590-billion-dollar) two-year stimulus
package.
The EU Chamber of Commerce accused China of largely preventing
foreign firms from undertaking projects linked to the stimulus
package.
Ben Simpfendorfer, an economist with the Royal Bank of Scotland in
Hong Kong, said the government's new move was 'in short, a 'Buy
China' policy.'
'The edict will spur protectionist sentiment and is at odds with
worries about the country's export sector,' Simpfendorfer said in a
briefing note.
Other recent trade disputes cover issues including US limits on
Chinese poultry and steel imports.
China's plans to order pre-installation of Green Dam internet
'firewall' software on all new computers from July 1 also attracted
criticism for allowing what the West considers to be unacceptable
levels of censorship and invasion of privacy.
But some analysts see China's differences with the United States
and Europe over Green Dam as another trade spat, rather than a rights
issue.
'They would not complain if we used US software,' Jin said of the
dispute over Green Dam.
'They complain when we use our own software, don't you think
that's strange?' she asked.
Despite the strong rhetoric, the prospects of any trade war in the
near future appear slim, with Chinese, US and EU officials all saying
they are committed to dialogue.
'The ongoing global financial crisis has given rise to
protectionism worldwide,' Minister of Commerce Chen Deming wrote in
state media in April.
'Since it has been a victim of anti-dumping measures for a long
time, China should push forward free trade and safeguard multilateral
trade rules to overcome the crisis as early as possible,' Chen
said.
USA
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