American Association of Suppliers of Paper Products (AASPS) on September 8, 2005 to the U.S. International Trade Commission (ITC) and the U.S. Department of Commerce (DOC) to sue China, India, Indonesia, three countries in the delineation of notebooks on the possibility of anti-dumping behavior
The U.S. parties concerned to the United States imposed high anti-dumping duties on products from China and other places. dumping behavior, requesting the U.S. authorities to impose high anti-dumping duties on products from China and other places. If they do not respond to the lawsuit, Chinese enterprises will be subjected to a heavy duty of 200% to 300%. The case involves more than 20 companies in China, and the total amount involved is as high as 130 million U.S. dollars, which is the largest case involving the stationery industry in China in recent years.
Chinese stationery industry in recent years.
"Such a high anti-dumping duty scares American customers from placing orders." For this week's opening of the Canton Fair, Zhejiang Guangbo Group Assistant General Manager Lin Xiaofan has never been so worried: the company's annual exports to the United States of America's scribing notebooks worth 3 million - 4 million U.S. dollars, and according to the U.S. Department of Commerce recently ruled that the future export of such products will be Guangbo levied anti-dumping duties of 135.02%.
Preliminary ruling decided to impose a huge anti-dumping duties
The time is at a critical moment in the U.S.-China trade, the U.S. is once again against the news of anti-dumping duties levied on Chinese products. The U.S. Department of Commerce recently ruled that it will impose anti-dumping duties on imports of grammage paper products from China, with duty brackets ranging from 52.10 percent to 258.21 percent. These products include stationery paper such as notebooks, loose-leaf paper and composition books.
The U.S. Department of Commerce said the surge in imports of such products has reached a serious level, so it decided to impose anti-dumping duties and may be retroactive to mid-January this year. In addition, the U.S. has imposed punitive measures on stationery paper products from India and has begun imposing anti-dumping duties on similar imports from Indonesia.
Price, a director of the American Stationery Paper Supply Association, said the imposition of these duties shows that dumping of stationery paper products has indeed become widespread. He argued that dumping and subsidizing practices by India, Indonesia and China on these products have harmed U.S. products and worker employment.
There is still a turnaround in the levy
"At the moment, the U.S. Department of Commerce is a preliminary ruling, and there may be a turnaround in things." Lin Xiaofan said it is estimated that the U.S. Department of Commerce will further verify the Chinese companies involved in the case and make a final ruling in August this year. If Guangbo still want to continue to export the United States scratch notebook, there is a "reversal" of the opportunity. Lin Xiaofan said, in accordance with U.S. regulations, enterprises can be in June next year on the case for administrative review. "If it is determined that does not constitute dumping, or dumping to a lesser extent, the corresponding more anti-dumping duties will be returned to our dealers." Now U.S. dealers who want to import scratch laptops from China must pay a deposit to the U.S. government in accordance with the corresponding percentage of anti-dumping duty, which is often used to subsidize local manufacturers, according to Lin Xiaofan.
Paper enterprises to set up factories in third countries to circumvent
The United States launched an anti-dumping investigation last year, China's main enterprises involved in the case, in addition to actively responding to the case, has been considering anti-dumping duties to cope with the policy. Zhejiang Guangbo adjusted the structure of export products, the U.S. exports of scribing notebooks accounted for only about 10% of the total exports, some high-grade fashion class prints, office supplies and other exports gradually increased the proportion. As the U.S. anti-dumping target is the size of more than A4 lined notebooks, Guangbo will be exported to the office note paper, size less than
A4 notebooks to avoid sanctions. According to Lin Xiaofan revealed that they have begun to research the surrounding countries of raw materials, labor costs, tax policies and other circumstances, to consider setting up factories in neighboring countries, so as to circumvent the U.S. anti-dumping sanctions.
The world is not ready for the rise of China, nor is the United States. Low labor prices and factor costs, such as land, so that China's manufacturing industry, especially labor-intensive industries have gained a price advantage, made in China's products "swept" the United States and Europe.
But the truth is not what the U.S. and Europe have portrayed, and the competitive advantage rests firmly in textiles, electrical and mechanical goods, and other industries. These advantages are the natural result of the deepening process of global economic integration, which has led to the transfer of international industries.
The root cause of the U.S.-China trade deficit is this!
The imperfections of the legal system and social security mechanisms, as well as the abundant supply of labor, it is true that over the past 10 years, China's labor prices have not risen significantly, but in no way the result of China's implementation of trade protectionism, such an accusation is groundless.
Arrogance and prejudice used to blind the visionary!
The root cause of the U.S.-China trade deficit, the responsibility lies mostly with the Americans themselves. The consequences of the weakening of the competitiveness of some of their own industries, but need to be held responsible by others, how unfair it is! Moreover, in the case of a widening trade deficit, it is still hostile to restrict the export of high-tech products to China.
But perhaps only the political wisdom of cooperation and compromise can resolve the friction and differences among big countries.
As a rising power, China must also change its previous positioning and needs to take on some of its responsibilities as a great power to maintain the relative smoothness of the global economy and politics.
The face of a wave on the yuan exchange rate adjustment and calls, in the face of more and more countries on the constant influx of Chinese textiles worries, China can not be silent, the necessary "appeasement" is needed.
In fact, China is beginning such "as"! (Wen/Zhenhua)
The trade imbalance between China and the United States, with the U.S. side having a huge deficit that is growing rapidly, is an old problem. With the expansion of the amount and other issues of Sino-US economic and trade relations, the deficit problem is increasingly politicized by the US side. The U.S. side's pressure on the appreciation of the yuan, the proposal by some lawmakers to impose a 27.5 percent surtax on Chinese products, the accusation that Chinese products exacerbate the unemployment of U.S. workers, as well as the restriction of textiles to China and the anti-dumping of color TVs are issues that mainly stem from the issue of the U.S.-China trade deficit.
The truth about China-U.S. trade gap
China-U.S. trade is developing rapidly
As China and the U.S. are the most active economies among the developing and developed countries, respectively, strong domestic demand has prompted the rapid development of economic and trade relations between the two countries. Trade between the two countries reached $169.6 billion in 2004, 72 times the 1978 level, according to Chinese customs statistics. The Office of the U.S. Trade Representative also recognizes that trade with China is its fastest growing segment, with U.S. trade exports to China totaling $34.7 billion in 2004, an increase of 114 percent over 2000. During the same period, U.S. exports to Germany grew by only 7 percent, exports to Canada grew by 6 percent, and exports to Japan declined by 17 percent. China became the fifth-largest U.S. exporter after Canada, Mexico, Japan and Britain.
The U.S.-China trade relationship has been largely unaffected by the U.S.-China relationship, with total U.S.-China trade and commerce declining by 3.9 percent only in 1990, in the past 25 years, despite the U.S.-China relationship's experience with the bombing of embassies, the Cox Report and other events. In addition, China-U.S. trade relations have been little affected by the U.S. economic cycle.
According to China's statistics, China-U.S. trade started with a deficit of $6.2 billion on the U.S. side in 1993, rising to $80.3 billion in 2004, a nearly 12-fold increase in 11 years, while according to U.S. statistics, the U.S. side began to have a deficit of $300 million in 1983, rising to $162 billion in 2004, according to U.S. statistics. According to U.S. statistics, in 1988, China began to enter the United States of America's top 10 deficit countries, in 1989 from the 9th place to the 6th place, 1990 climbed to the 3rd place, 1991, China became second only to Japan's second-largest deficit object. 2000, China's trade surplus with the U.S. exceeded Japan and became the largest U.S. trade deficit country. Since then the trade deficit has continued to climb, and by 2004, China accounted for 26.2% of all U.S. trade deficits.
The U.S.-China trade balance of different statistical caliber
For a long time, China and the United States in the trade statistics have been differences, highlighting the U.S. statistics from China's trade deficit to be much larger than China's statistics on the U.S. trade surplus, the difference is not only a long time, and showing a trend of expanding.
The U.S. Department of Commerce from the Chinese mainland direct imports and re-exports from Hong Kong, but the origin is the Chinese mainland of all goods are counted as imports from China, that is to say, the United States of America to the mainland of China's origin is the value of all products are counted as China's exports to the United States. China's customs statistics include only exports from mainland China directly to the U.S. and goods whose final destination is known to be the U.S. at the time of export but which are re-exported through Hong Kong. However, the final destination of many mainland Chinese exports is not always clear, so many Chinese products ultimately destined for the United States are not included in China's trade statistics and are counted as exports from mainland China to Hong Kong.
There are at least two reasons why the value of Chinese exports to the United States via Hong Kong differs from the value of Hong Kong's published re-exports. First, many goods exported from mainland China to Hong Kong are not counted in the Chinese data because their final destination is unclear. Second, the U.S. import statistics overestimate imports from China by including the value added of re-exports. Considering that the services Hong Kong provides for mainland exports to the U.S. include arranging transportation, insurance, finding customers and so on, the value added for these goods is considerable.
Differences in statistics on China's imports from the US
Despite the differences between China's statistics on imports from the US and the US's statistics on exports to China (the difference between the two was US$4.3 billion in 1995, US$5.5 billion in 2003, and jumped to US$11.9 billion in 2004), if one takes into account the fact that imports are on a c.i.f. basis, and exports on a f.o.b. basis The difference in transportation costs, it can be said that the two are roughly equivalent. This suggests that there is a large difference between the statistical trade surplus (deficit) between China and the United States, although there is a certain relationship with China's statistical imports and U.S. statistical exports, but it is not the main reason.
Both sides did not include trade in services
The U.S. in the overall foreign trade deficit continues to be the case, merchandise trade deficit is basically a growing trend, while trade in services, on the contrary, the trend of expanding surplus.
According to the WTO report, U.S. service exports accounted for 18% of the world's largest exporter of services, and the world's largest services trade surplus. 2003 U.S. services trade 549.59 billion U.S. dollars, an increase of 5.77%; exports of 304.81 billion U.S. dollars, an increase of 4.3%; imports of 244.78 billion U.S. dollars, an increase of 7.64%; service trade surplus of 60.03 billion U.S. dollars, an increase of 7.64%. trade surplus of $60.03 billion, a decrease of 7.41 percent.
It should be pointed out that a large number of services implicitly affects our understanding of the real and comprehensive situation of services trade between China and the United States.
First, a large number of non-cross-border service transactions are not included in the statistics, resulting in an underestimation of the U.S.-China services trade. According to a report by the Bureau of Economic Analysis of the U.S. Department of Commerce, sales of services by U.S. affiliates abroad amounted to $338 billion in 1999, which is 21% higher than the $279 billion in cross-border service exports to non-residents based on balance of payments methodology statistics for that year, and shows a fast-growing trend. Although the two figures cannot be simply added together, services provided by foreign branches or subsidiaries in host countries have become a growing concern as a form of services trade exports as U.S. multinationals increase their investments abroad.
In our country, many U.S. manufacturing TNCs are simultaneously investing in our trading, marketing, or financial sectors, and these firms are providing a large number of services while supplying products domestically in order to internalize earnings and support the manufacture and export of their goods. For example, automobile manufacturers are simultaneously providing credit services to consumers, petroleum manufacturers are investing in their own gas stations, and multinational corporations are locating their research and development centers in the country, such as IBM and GE. Currently, because the services provided domestically by U.S. affiliates are not reflected in the balance of payments, the U.S.-China trade in services statistics do not include this component.
Secondly, the additional services accompanying foreign direct investment are often "capitalized", and in China, it is more common for foreign investors to "invest in technology", which actually makes some knowledge-intensive services, information-intensive services, and research and development services implicitly provided. Services provided by the implicit, although China also pay expensive costs, but in the service trade imports can not be reflected.
Thirdly, a large amount of services paid by China in the name of purchasing equipment is also not accounted for.
Combining these three factors, it can be said that both China and the United States have inaccurate trade data, with China's data being underestimated and the United States' data being overestimated. The differences in the U.S.-China trade statistics are mainly due to differences in whether re-export trade, especially China's re-export of goods from Hong Kong to the U.S., is included in the bilateral trade statistics of the two countries.
How big is the U.S.-China trade gap
Since 1990, several economists have estimated the actual size of the U.S.-China trade gap. California economists K.C. Fung and Zunyi Liu, with adjustments, estimated that the U.S. trade deficit with China in 2002 was $76.6 billion. Adding trade in services, the U.S. trade deficit in 2002 was $74.3 billion, a figure roughly comparable to the average of U.S.-China statistics ($72.9 billion). According to this figure, the U.S. statistical trade deficit with China was overestimated by $28.8 billion, and China's statistical trade surplus with the U.S. was underestimated by $31.6 billion.
Causes of the Huge U.S.-China Trade Surplus
U.S. Perceptions of the Huge Deficit
The U.S. believes that the trade imbalance between the two countries is caused by (1) U.S. products experiencing trade barriers from China and a lack of access to China's markets; (2) China's lack of transparency in its policies and its inability to fully implement the agreements that the two countries have signed; (3) China's abuse of human rights, labor rights and environmental protection, as well as China's use of human rights, labor rights and environmental protection; and (4) China's use of the Internet. , labor rights, and environmental protection abuses by China and its refusal to comply with international standards in these areas to gain an unfair trade advantage over the U.S.; (4) the unpredictability of the future; and (5) China's intention to depress workers' wages and the value of the renminbi in order to promote its exports.
The five main areas mentioned above boil down to accusations that China's market is not open enough. However, China's large trade surplus with the United States does not indicate that China is pursuing protectionism. It should be noted that China is currently one of the most open markets in the world, if not the most open of all fast-growing economies. The high degree of openness of China's market is reflected in the following aspects: firstly, the growth rate of China's global import scale in recent years has been phenomenal, with imports increasing from US$53.3 billion in 1990 to US$561.4 billion in 2004, a 9.5-fold increase in 14 years. Import dependence increased from 15 percent in 1990 to 33.9 percent in 2004, with lower import tariffs in place.
The real reason for the huge surplus
The former East Asian countries and regions shifted their trade surpluses with the U.S. to China
China's processing trade, most of which is developed by Japan, South Korea, Hong Kong, Taiwan, and other East Asian countries and regions, in order to reduce production costs and improve competitiveness, and to shift the labor-intensive industries and the high-tech industries belonging to the labor-intensive assembly processes. The above East Asian countries and regions have set up a large number of foreign-funded enterprises in mainland China, and their products are processed and assembled in China, relying on the original sales channels, and are mainly re-exported to the United States, Europe and other traditional markets through Hong Kong and other places. Mainland China from the above countries and regions to import raw and auxiliary materials, spare parts, etc., in mainland China for processing and assembly, and then exported to the United States and Europe, this trade process, resulting in China's processing trade imports of raw and auxiliary materials, spare parts and export market separation. As the countries of origin of imported goods to the "substantial change" as the principle, the export of processed products from the above countries and regions to China.
From the point of view of the U.S. own trade deficit, in the past decade, the U.S. total foreign trade deficit is increasing, especially since the end of the 1990s, although the U.S. trade deficit with China continues to increase, but this deficit accounted for the proportion of its total foreign trade deficit has not significantly increased in recent years to maintain at about 20%, much lower than Japan in the early 1990s, more than 50%. More than 50 percent.
While China has now replaced Japan as the largest U.S. foreign trade deficit, the U.S. trade deficit with Japan, South Korea, Taiwan, China and other East Asian countries (regions) has been declining as a share of its total foreign trade deficit despite an increase in absolute terms since the early 1990s. In contrast, the trade deficits of mainland China with Taiwan, South Korea and Japan have been rising (see Table IV).
If East Asia is viewed as a whole, the U.S. trade deficit with East Asia is in relative decline. Therefore, China's trade surplus with the United States is now largely shifted from other countries and regions in East Asia, and as other countries and regions in East Asia continue to shift production to mainland China, their exports to the United States have therefore shifted to mainland China's exports to the United States.
From the export point of view, on the one hand, is that many of China's current exports are in fact originally produced and exported in other countries (regions) in East Asia, only now transferred to China. On the other hand, from the market point of view, the other countries (regions) in East Asia, the market size is generally smaller than Europe and the United States, and the restrictions on entry are also really a little more stringent than in Europe and the United States, so a large number of China's exports will be mainly sold to Europe and the United States rather than East Asia.
From the import point of view, the reason why China imported a large number of imports from East Asia rather than from the United States for the following two reasons. First, the U.S. imposes strict restrictions on the export of high-tech products to China, making it impossible to import a significant portion of the products that China would like to import. Second, because China needs a lot of machinery, equipment and intermediate inputs for processing trade production, and China is still generally backward, imported for processing trade of various inputs in the United States and Japan have largely lost their comparative advantage, so China is more from South Korea, China Taiwan and ASEAN imports.
China's labor cost advantage leads to surpluses in four of the largest categories of goods
The main reason for the trade imbalance itself is the difference in comparative advantage between the two countries. China's comparative advantage lies primarily in its abundant labor force, while the U.S. advantage lies in its research capabilities, technology and human capital. In terms of industry, China's comparative advantage lies in relatively labor-intensive industries, while the U.S. is in technology- and human capital-intensive industries. The products with the largest trade surplus between China and the U.S. are general machinery and electrical appliances, furniture and toys, shoes and hats, and textile and clothing, which reflect China's labor cost advantage. In 2004, the trade surplus of these four categories of products was 52.2 billion U.S. dollars, accounting for 89.2% of the U.S.-China trade surplus in that year.
From Table 5, we can see that the two sides of the largest volume of trade at the same time is also the largest difference is machinery and electrical products. Such goods, especially in the higher technical content of products, such as nuclear reactors, high-performance instruments, meters, etc., the United States originally had a more obvious advantage, but the United States of America's technology exports to China to implement strict control, in 2003 only 11.4 billion U.S. dollars in exports to China. On the contrary, China's exports to the United States of ordinary mechanical and electrical products, as well as by foreign investment, processing and assembly of high-tech mechanical and electrical products in China up to 39.4 billion U.S. dollars, so that the U.S. side had the advantage of the project appeared under the 28 billion U.S. dollars of trade deficit.
The trade volume and trade surplus between the two sides are located in the 2nd is furniture, toys and other miscellaneous items, with typical labor-intensive characteristics. 2003 China's deficit in the order of products are plant products, chemical products and paper products, the deficit of 2.1 billion U.S. dollars, 1.57 billion U.S. dollars and 950 million U.S. dollars, respectively.
The third largest item in the U.S. surplus was paper products, which precisely reflects China's poor forest resources. The U.S. is the world's largest and most advanced industrialized country, yet it relies on its agricultural and forestry sectors to generate a trade surplus in U.S.-China trade.
Restrictions on China's technology exports limit U.S. comparative advantage
China's economic growth, driven by science and technology, is conducive to the reduction of the U.S. trade deficit, but the U.S. has always been on the control of China's high-tech exports, and is reluctant to export to the Chinese side of the ultra-large computers, numerically-controlled machine tools, satellite technology and other Chinese needs, and even the technical content of the product is not very high have restrictions.
The low savings rate of the United States is another important reason for the U.S. deficit
The fundamental reason for the U.S. trade deficit is that the U.S. economy is structured in such a way that aggregate demand is greater than aggregate supply. According to the constant equation of the national economy, the difference between total investment and total savings has to be balanced by the trade balance? This is the root cause of trade deficits and surpluses. For example, in the United States from 1960 to 1971 total savings were greater than total investment? So there was a trade surplus year after year, and manifested itself in U.S. net foreign investment and claims; but because the U.S. in the last 30 years or so the structure of the distribution of national income is not reasonable, it is a low-saving, high-consumption country, resulting in demand exceeding supply. The savings rate of the United States has been declining since the 1980s, and was only 2.3% in 2001, reaching its lowest point in October 2001 at 0.3%. High consumption has led to total savings being less than total investment, producing trade deficits and fiscal deficits.
Reassessing the impact of the trade deficit on the U.S.
Multifaceted factors make the negative impact of the trade deficit on the U.S. economy is quite limited
In the context of economic globalization, U.S. businesses in the globalization of the scope of the expansion of U.S. companies 10 years ago, U.S. companies to operate globally accounted for only 20% of the total number of U.S. enterprises, the proportion of the current this proportion has been more than 60%. Data from China's Ministry of Commerce also show that U.S.-invested companies in China sold more than $75 billion in goods in the Chinese market in 2004, with an equal amount of goods exported from China as a production base. According to a 2003 survey conducted by the American Chamber of Commerce in China? the return on business in China for U.S.-funded companies is quite impressive.
The U.S. is a huge beneficiary of Sino-U.S. trade, and it receives at least a large share of the benefits in terms of employment and maintaining a high standard of living at home. While some members of the U.S. Congress have accused China of taking jobs away from U.S. workers, in fact, if you look at the information provided by the Office of the U.S. Trade Representative in the report "The United States and the World Trade Organization": for every billion dollars' worth of goods and services exported by the United States, nearly 10,000 jobs are created within the United States, and direct exports to China alone provide 300,000 high-quality jobs annually. Its annual direct exports to China alone provide 300,000 good-paying jobs. And bilateral trade also provides a large number of jobs in U.S. industry and services, and the trend is increasing year by year. If trade with China breaks down, the U.S. unemployment rate will climb sharply, and the U.S. stock market will be in turmoil.
In addition, from the U.S. domestic market price point of view, China's goods are cheap and good quality, which will help alleviate U.S. inflation, so that the majority of consumers to get the benefits.
Negative impact on the U.S. is seriously exaggerated by a part of the U.S. interest groups
It is undeniable that the U.S.-China trade deficit does have a certain impact on the employment of some U.S. manufacturing industries, but the huge imbalance in U.S.-China trade has resulted in the U.S. manufacturing industry a large number of job losses, but the claim is lack of factual basis.
First, in the United States, since the mid-1990s along with the massive adoption of new technologies and the resulting increase in productivity, the same output requires fewer people. Second, the economic cycle determines the employment situation. Whenever GDP growth is strong, employment increases dramatically. Unemployment of production workers also decreases. Again, the economic downturn in Europe and Japan and the slow growth or even stagnation of imports from the U.S. are among the factors affecting U.S. manufacturing and employment. Overall, the U.S. manufacturing unemployment and the trade deficit with China has no causal relationship.
The U.S. should not shirk its responsibility
The U.S. not only implements stringent technology export control on China, but also strengthens technology control on other countries and regions. The U.S. has a large comparative advantage in the production and export of high-tech products, and for many years the U.S. has had a large surplus in the export of such products. Second, imported oil has long been the largest single commodity in the U.S. trade deficit.
Untying the strings of the US-China trade surplus
Possible US measures
The US trade policy toward China is vulnerable to the interference of ideological factors, and China is guarded as a potentially hostile power.
Restrictions on imports from China
According to the statistics of China's Ministry of Commerce, from 1980 to 2003, the U.S. imposed restrictions on imports from China on a wide range of products, including knitted fabrics, bras and gowns, color TVs, malleable cast iron fittings, polyester/cotton printed fabrics, etc., and the form of restriction was based on anti-dumping, and about 80 percent of the anti-dumping cases have been closed. About 80% of the anti-dumping duties imposed by the United States.
Request for further opening of service and agricultural markets to the U.S.
The U.S. has a comparative advantage in most agricultural products, certain manufacturing industries, and almost all modern services, so the U.S. is asking China to open up its markets so that U.S. agricultural products, certain manufactured goods, and many service products can be exported to China.
Continued pressure on intellectual property protection
The issue of intellectual property protection is related to the U.S. monopoly in global trade. By protecting intellectual property rights, the US is also preventing the externalities of knowledge and technology from playing out in order to maintain its monopoly advantage in technology for as long as possible.
Insisting on the appreciation of the yuan
The appreciation of the yuan may help the United States to reduce imports from China for a period of time, but it cannot really solve the problem of the U.S. trade deficit. The U.S. insistence on RMB appreciation may not be aimed primarily at resolving the trade imbalance, but rather at preventing China's further rapid economic development by utilizing exchange rate adjustments.
China's trade surplus with the U.S.
Although the root cause of the U.S.-China trade surplus problem does not lie in China, and the adverse impact of the trade deficit itself on the U.S. is limited and even has a favorable side, the U.S. government is very likely to have a major change in trade policy, and will be able to ignite the fuse of international trade friction, so our side must be treated with caution.
Resolving economic and trade relations with the U.S. through bilateral consultations.
Taking advantage of the situation that the U.S. is in need of our help on some international political issues, the U.S. has been able to restrain the U.S. from making large-scale attacks on me on trade issues. Secondly, show appropriate flexibility on trade issues of key concern to the United States. Third, play the lobbying function of U.S.-funded enterprises in China. Finally, maintain good order in exports to the U.S. and avoid giving the U.S. side an excuse to implement trade protection against my U.S. exports.
In the near future, China should also consider taking the initiative to take "pressure" measures to ease the pressure from the United States. First of all, the effective implementation of WTO accession commitments, do not give people a handle. Second, increase imports from the United States, so that the U.S. business community is fully informed, in order to increase its interest in exporting to China and confidence. Third, mobilize U.S. multinational corporations in China to do the work of their governments. In addition, China should increase exchanges with developing countries to form a *** understanding and unite to resist trade protectionism.
Vigorously develop a "domestic demand economy"
Over-reliance on foreign demand deviates from the general rule that large countries focus on domestic demand, objectively restricts the sustainable growth of domestic demand, makes the terms of trade continue to deteriorate, exacerbates the imbalance of regional development, and results in an unfavorable international transfer of wealth to China.
Actively responding to trade disputes between China and the United States
Practical and theoretical analyses have shown that the United States in practice pursues a teeth-for-teeth trade policy that acts in accordance with the results. In essence, the "tit for tat" trade policy is a kind of trade policy that leads the other party to cooperate. As long as the Nash equilibrium in the trade relationship between China and the United States still exists, the United States will not try to break this equilibrium involving its own huge economic interests, and keeping the equilibrium exists is the bottom line of the United States policy.
So for China, if in the negotiation process, not only the trade policy of trade in goods as the bargaining chip with the United States, but also the trade in services and investment related to the interests of the U.S. multinational corporations together as part of the strategic trade policy, then in practice can get more benefits, and make fewer concessions to the United States.
When conflict is inevitable, clarity can lead trade rivals to adopt a cooperative posture in the next game. The guiding principle of our strategic trade should be to have a clear attitude, try to avoid conflict and strive for cooperation, but take decisive measures when conflict occurs.
Speeding up the pace of "going out"
Encouraging China's competitive industries and enterprises to "go out", such as home appliances, textiles and garments, food processing and light industrial products, and some electromechanical products with obvious advantages in quality and price ratio. In addition, through foreign investment in local enterprises and institutions, the domestic excess production capacity, raw materials and components exported to foreign markets.
The next five to ten years, the main goal is to gradually find out in practice and establish suitable for China's enterprises to operate across borders of foreign investment methods, geography, ways and management system. In the next twenty years, the main goal is to establish an initial internationalized production system, form a number of medium-sized multinational corporations and enterprises, and gradually cultivate an internationalized integrated logistics and financial operation capability.
Precautious response to the pressure of RMB exchange rate appreciation and the exchange rate mechanism
In the medium and long term, increasing the float is the direction of the reform of the RMB exchange rate system, but the exchange rate system adjustment must take into account the employment and the balance of payments basic equilibrium, at the same time, choose the foreign exchange market is relatively stable timing of the reform.