China will face increasingly more trade protectionism over the coming two to five years, according to an official at the Economic Forecast Division/State Information Center. Mr. Zhang stated that, as the global economy enters the post-crisis era, then trade wars will escalate.
“In the next two to five years, China will face increasingly more trade frictions. China’s export will inevitably be the hardest hit by trade protectionism. Furthermore, trade barriers will be the norm and there will be pressure on China’s RMB, expecting it to further appreciate. Filing complaints or turning to the WTO (World Trade Organization) may be of no use. The key to breaking encroaching trade barriers lies in China’s transformation, strategic realignments and the State’s earnings model.
Source: Shanghai Securities News, August 11, 2010