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China enters peak period of trade disputes
(Xinhua)
Updated: 2004-10-26 09:30
With the fast growth of China's foreign trade after the WTO accession, China
has entered a peak period of trade disputes with foreign countries, said
officials with the Chinese Ministry of Commerce.
Vice Minister of Commerce Yu Guangzhou said at the on-going 96th China Export
Commodities Fair that China's surging exports in recent years have been
accompanied by more and more international trade disputes over Chinese products.
According to Yu, China's export trade has maintained an annual growth rate of
more than 30 percent since China entered the World Trade Organization (WTO). In
the first three quarters of this year, China's exports jumped 35.3 percent
year-on-year, topping US$400 billion.
Experts said China's fast economic growth and rising status in international
trade put pressure on many foreign competitors. As a result more and more
foreign companies are asking their governments to put limits on Chinese
products.
China's color TV industry is a good example. On May 14, the US International
Trade Commission said that Chinese businesses were dumping their TVs on the US
market. US authorities are now collecting a high anti-dumping tax on China's TV
exports totaling 486 million dollars.
Liu Meikun, deputy director of the China Chamber of Commerce for Import and
Export of Machinery and Electronic Products, said at the fair that the move
brought great losses to China's TV industry. The tax means that China may lose
the United States' market because of high exporting costs, leaving about 35
million TVs of production capacity unused.
Currently, many Chinese products increased their exports due an increase in
quantity. This was especially obvious in the textile industry. Wang Shouwen,
director of the ministry's department of fair trade said that this is one major
reason for increasing trade disputes.
According to Wang, the low-value-added textile industry in China can only
make profits by exporting large quantities of products. As the exports quota for
textile products will be canceled from January 1, 2005 worldwide, China's
textile industry will face more exporting opportunities than ever. This means,
though, that different kinds of trade barriers will follow.
On Oct. 12 this year, the trade representative of the European Union
announced that the EU will stop general system of preference (GSP) treatment for
Chinese textile products and garments because of Chinese products are now
competitive in the European market.
The US textile and clothes producers announced the same day that they will
launch special safeguard measures against some Chinese products.
Ministry officials said as China still faces problems of improper management
in the exports market, some Chinese companies use improper means to expand
exports.
According to the ministry, in the first half this year, the imported
China-made penicillin has accounted for about 60 percent of the Indian market.
But as some Chinese companies tried to further expand its market share and
sold the products at a very low price. Because of this, India launched safeguard
measures against the Chinese penicillin beginning in July.
Statistics from the Ministry of Commerce show that currently, one out of
every seven anti-dumping measures is against a Chinese product. The year 2005
will see the peak of anti-dumping cases against Chinese products.
Wang said for a long time to come, Chinese exported products may face more
trade disputes including anti-dumping, anti-subsidy, protection measure, special
safeguard measures and green trade barriers.
He urged the Chinese companies to watch closely the moves of foreign
countries and regions, and understand the latest information on trade barriers,
so as to reduce the risks of trade disputes.
According to Wang, the Chinese Ministry of Commerce has just opened an
Internet website for trade information. China is also working to establish a
mechanism to help enterprises affected by anti-dumping and special safeguard
measures.
In addition, experts urged Chinese companies to strengthen self-control in
exports and try to keep China's exports market in sound order.
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