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People's Daily Online>>China Business

Why is China always injured by trade protection?

By Luo Lan (People's Daily Overseas Edition)

08:21, March 29, 2012

Edited and translated by People's Daily Online

China is the country most injured by trade protection measures in the world, according to data announced by the Global Trade Alert a few days ago.

Since joining the WTO, China's import and export trade has been developing rapidly, but at the same time, frictions with its trade partners also increased. Zhong Shan, vice commerce minister of China said recently that China was the country encountering most trade frictions for 17 consecutive years. The new forms of frictions also emerged continually and involved more and more industries and countries.

Trade protection measures against China become even fiercer.

Zhong said that the development environment of China's foreign trade becomes complicated during the period of the 12th Five-Year Plan and the trade protectionism directing at China becomes even fiercer. In 2012, China has encountered eight trade conflicts, involving about 2.3 billion U.S. dollar, a growth of 80 percent year-on-year.

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Canada at 2012-03-2970.36.49.*
It"s partly because Obama is trying to protect or create jobs, especially higher paid union jobs, but the U.S. doesn"t play by the rules, especially when the rules are not advantageous to the bourgeoisie. They want free trade in other countries, but only in their own country when it"s to their advantage, and they play dirty. A few years ago Canada won a softwood lumber dispute, the U.S. refused to pay up, negotiations followed, and Canada"s industry eventually settled for a loss of about one billion. Trade with China has revived Canada"s forest industry from the graveyard, as previously Canada was heavily dependent on the U.S. for trade.Many on the left and unions were opposed to free trade because the cost of living is much higher in North America than in 3rd world countries, and the higher union wages and benefits [gains made over decades] made manufacturing here uncompetitive. Although manufacturing workers in China earn much less, it doesn"t necessarily result in cheaper prices here. Often the surplus value and profit is pocketed by the bourgeoisie.Also, constant negative press about China creates popular support for the U.S."s aggressive military move into the Asia Pacific. A large part of the American economy revolves around the military & it"s industrial complex, creating fear and bogus enemies is highly profitable, this primarily benefits the bourgeoisie, and Obama is acting on their behalf.

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