WTO’s anti- dumping ruling signals China’s rising role in the international organization
It seems China is ready for a change in its role in the World Trade Organization ( WTO) and global trade system.
The WTO’s ruling on Wednesday that certain methods used by the US in determining to place anti- dumping duties on Chinese products violated WTO rules has been gaining attention and has underlined China’s increased awareness of how to use WTO rules to protect its own interests.
China has turned its attention to learning how to act in line with WTO rules since it became a member of the international organization in 2001, but now the country is no longer the student who needs to be lectured to abide by the rules.
China utilized the WTO’s dispute settlement mechanism in 2013, challenging the US’ assessment of the dumping of Chinese products in the American market. China’s victory in the case shows that the country has become mature enough to protect its profits with prevailing rules.
Meanwhile, the US has taken a tough stance toward the WTO’s ruling, with a spokesman for the US Trade Representative’s office quoted by Re- uters saying “Nothing in the report will undermine the commitment of the United States to impose antidumping duties to address injurious dumping.”
As trade protectionism surges in the US, Washington is expected to roll out more measures to set new barriers for Chinese products looking to enter the American market.
To counter any impact from protectionist policies by the US, it is extremely important for China to stay rational and resort to WTO rules, instead of engaging in a lose- lose trade war between the world’s two largest economies.
The authoritative status of the WTO ruling should be upheld by each side. The two countries currently face challenges over the proper handling of sensitive issues, such as the recognition of China’s market economy status, and it would be dangerous if the two countries were to cross the bottom line by running counter to WTO rules.
In this regard, US presidential candidate Donald Trump’s threat to pull the US out of the WTO and the US’ recent deviation from free trade talks have been a source of concern.
Nearly 15 years after China’s accession to the WTO, the country is now in a position to promote the liberalization and facilitation of global trade.
China has announced its intention to foster a high- standard global free trade network and is expected to play a more important role in the WTO. We believe that China will bring new blood to the international organization as it promotes free trade and cooperation among members.
With the latest WTO ruling, the US should be aware that it can not do whatever it wants and resort to trade protectionism any more.