No room for trade protectionism in China’s inclusive approach to global economic reform
China should keep pushing ahead for reform of international economic coordination mechanisms and improved global governance on the basis of equity and efficiency.
SINCE becoming a member of the World Trade Organization (WTO) in 2001, China has seen remarkable growth and become an integral part of the global economy. In a symbiotic relationship, China’s membership has brought significant changes both internally and worldwide.
In 2016, the latest WTO estimates show world trade will grow slower than expected, an indication that the global economy has yet to fully recover from the debilitating effects of the financial crisis that began in 2008. China continues to be an active contributor to global economic recovery. As a major trading power, China needs to better play its role as a flag-bearer for free trade, resist trade protectionism and fight antiglobalization. (FTAS) and its Belt and Road Initiative as ways to open and increase competition in its trading environment. Over the past few years, expanding imports has always been at the top of China’s foreign trade agenda.
The most telling example of this is the fact that China has entered into FTAS in the past two years with developed and newly industrialized economies whose per-capita GDP is much higher than that of China.
Last year, China announced its FTAS with the Republic of Korea and Australia, which took effect on December 20, 2015. In addition China expanded the range of preferential taxes for imported consumer goods for daily use and cut duties on imported equipment, key components, energy and raw materials from January 1, this year.
As for the TPP agreement, China has repeatedly said that the initiators should ensure the partnership is in line with WTO rules and proposed a free trade area with the European Union.