China is suffering from trade protectionism
A top government think-tank warned that China is likely to suffer from the rising trade protectionism against the backdrop of the worsening financial crisis.
In accordance with the report by the Development Research Center of the State Council, China will become the main objective of trade protectionism, and this behavior will make the exporting environment worse in China.
The nation’s export sector saw a rapid growth since China joined WTO in 2001. The surplus trade helped the country gather $1.95 trillion in foreign exchange reserves, which ranked the first in the world. In 2008, the surplus trade reached 295.46 billion Yuan, due to this situation, many foreign countries started to adopt their trade protectionism measures.
A six-month ban on toy imports from China has been carried out by the Indian government on Jan 23. Meanwhile, Chinese government claimed that China would file a case at WTO against the ban to import Chinese fowls.
The Ministry of Commerce reported that China is still one of the countries that are under anti-dumping probes since 1995.
This report also said that US government’s ‘Buy America’ clause caused a rise of trade protectionism all around the world.
A study released on March 17th by the World Bank showed that 17 of the G20 group have launched trade-restricting measures since last November.
At the G20 summit that was held on November 15th, Leaders of G20 group countries agreed to avoid setting trade barriers, but, in contrast, up to 47 measures which restrict trade have been taken in those countries since the end of the meeting.
China’s commerce minister, Chen Deming, said that China would definitely say no to protectionism and would give some useful suggestions in trade talks held in Doha.
The report suggested that China still need to support the labor-intensive export sector because it could provide about 40 million job chances every year.
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