As the EU and China become each other’s first and second largest trading partners, trade frictions are also increasing and escalating. In the future, the two sides are expected to establish a special mechanism to “nip possible trade friction in the bud.” Sun Yongfu, director of the European Department of the Ministry of Commerce, said in an interview with reporters yesterday that the Ministry of Commerce is discussing with the EU to establish a department-level early warning mechanism for trade frictions within the framework of the China-EU Ministerial Joint Economic and Trade Committee.
“When it is discovered that there is a tendency for trade friction, the two sides should negotiate and exchange information in advance to reduce and avoid disputes. This is the direction for my country and the EU to solve problems in the future.” Sun Yongfu said, for example, that the relevant departments of the Ministry of Commerce will collect some foreign trade information, For example, if my country’s export volume of a certain commodity grows too fast, or the price is too low, related industries in the EU may be affected. If the information is verified to be true, the two sides will communicate and negotiate to see how to solve the problem through industry exchanges. For example, our country may Measures must be taken to control disorderly growth and low-price competition.
Liu Yuanchun, deputy dean of the School of Economics and director of the Department of International Economics and Trade at Renmin University of China, said that in the 1980s, a similar early warning mechanism was established between the United States and Japan. This mechanism was based on the principle of “voluntary restrictions” , promptly communicate and communicate at an early stage when problems are discovered, and voluntarily impose certain restrictions on domestic industries, thereby preventing, reducing or even eliminating friction and preventing the other party from retaliating.
According to Wang Jian, director of the International Business Research Center of the School of International Business and Economics at the University of International Business and Economics, how to determine the critical point and method of restrictions on domestic companies is a key issue in this early warning mechanism. “How to judge whether the relevant industries of the other country are affected, and how to impose restrictions on domestic companies, all require specific standards.”
In this regard, Liu Yuanchun suggested that the principles of market stability and fair trade should be followed. If a large amount of exports by one’s own companies leads to widespread bankruptcy or suspension of production of the other country’s domestic companies, and the country’s export prices are significantly lower than the cost price, then there is a problem. of. At this time, the government should restrict the exports of domestic enterprises by raising export taxes, reducing domestic production capacity, and setting export quotas.
“Judging from the experience of the United States and Japan at the time, this mechanism is conducive to avoiding a ‘lose-lose’ situation in trade disputes, but it is difficult to fundamentally resolve the differences in the interests of the two economies.” Liu Yuanchun said that China and Europe Economic and trade relations are already one of the largest in the world. With the industrial upgrading of China’s manufacturing industry, the degree of trade overlap between the two sides has gradually increased. In the medium and long term, trade frictions are unavoidable.
