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China Foreign Trade Faces Major Pressure in Three Areas

Yu Benlin, the Deputy Director General of the Ministry of Commerce’s Bureau of Fair Trade for Imports and Exports, spoke at the “Expansion of Sino-US Economic and Trade Cooperation Forum” that was held during the 111th Chinese Imports and Exports Fair (the Canton Fair) on April 15, 2012. Yu explained that Chinese foreign trade is facing major pressure in three areas: increased external attacks, a tighter export environment, and international strategic planned pressure. 1) Increased external attacks: The U.S. has implemented both an anti-dumping and an anti-subsidies policy on imports from China. As an example, Yu mentioned the 2011 anti-dumping and anti-subsidies investigation on China’s solar products. 2) A tightened export market: World market demand remains weak. Taking the E.U. as an example, growth in E.U. countries is slower than expected, the manufacturing industry is shrinking, and its first quarter growth may be weak. 3) Increased International pressure: The world media has shifted its media campaign on China from the “China Threat” to “China Accountability.” Different countries have demanded that China take responsibility for things that are beyond China’s economic capability.

Yu also pointed out that the U.S. has misapplied its regulations to China’s imports according to its own wishes. As an example, he mentioned the “substitution country” used during the anti-dumping investigation. In addition to India, which the U.S. used previously, it has started to use Indonesia and Thailand (for importing goods). The anti-dumping duties that the U.S. imposed during its investigation of Chinese imports were normally above 100 percent.

Source: Xinhua, April 15, 2012