Protectionism to be severe next year, Chinese trade officials warn
TRADE protectionism targeting Chinese goods will continue to be “severe” in 2017 as anti-globalisation forces are likely to keep growing in the United States, senior Chinese trade officials said.
Also, many European politicians may play the “China card” in their elections, the officials said on Thursday.
Yu Jianlong, secretary-general of the China Chamber of International Commerce, said the situation remained challenging and complicated because both the US and European Union are either experiencing or will undergo dramatic changes in their political systems, which will have direct impacts on their trade relations with China.
Trade conflicts have escalated this year, with trade investigations now taking place on various types of goods, from telecoms to steel, and this is likely to continue.
The US initiated 18 trade-remedy measures against Chinese products including steel, agriculture and photo-voltaic products in the first half of the year, data from the Chinese Ministry of Commerce show.
“Even though China has become a net capital exporter this year, Chinese companies need to make investment decisions calmly next year, especially in the US and EU. The depreciation of the renminbi has also added pressure on their operating costs,” Yu said.
He said other factors such as the start of talks on the United Kingdom’s exit from the EU and the elections in Italy, France and Germany could also cut China’s export volume. Certain political parties strongly support the anti-globalisation movement.
To protect its interests, China this month notified the Secretariat of the World Trade Organisation that it requested dispute consultations with the US and the EU regarding special calculation methodologies in anti-dumping proceedings. The case now is being reviewed by the WTO.