In the process of economic globalization and trade liberalization, trade friction frequently arises. In recent years, China has experienced more and more trade friction and technical barriers. Why do these problems appear and how can China deal with them?

To get some perspective on these issues, People's Daily interviewed research fellow Lu Bo from the World Economic Research Institute under the Ministry of Commerce.

Q: Why has China come up against more and more trade friction in recent years?

A: Firstly, we must face this issue. With the sustainable growth of world trade, it is inevitable that trade friction will develop. Indeed, China has experienced a lot of trade friction and this has led to a number of anti-dumping sanctions being imposed on Chinese products.

China has had the largest number of anti-dumping cases launched against it in the world. Various technical barriers have also affected China's exports. Such barriers have expanded from cargo trade to service trade, from investment to intellectual property rights. Developing countries have launched anti-dumping cases against China because their industries are also labor-intensive and rely on export. China has directly and strongly competed with these countries and made their export difficult. During this process, many Chinese industries have undergone a transition or upgraded their technology. In the current world economic structure, it is unavoidable that some companies will experience conflict.

Q: What is the current situation in terms of trade conflict?

A: Although friction remains constant, Chinese products are welcome in the international market. The main reason for this is that Chinese products are very competitive. Chinese export growth has been realized under the pressure of various barriers.

If foreign governments restrict the import of Chinese products this will of course affect Chinese interests, but it also damages the interests of overseas consumers. Restrictions, however, can be difficult to implement and don't last long. In the long run, provided Chinese products are competitive, trade protectionism and propaganda will not prevent consumers from buying inexpensive, quality Chinese products. We are opposed to trade protectionism and discrimination against Chinese enterprises.

Transferring place of production

Q: How can trade friction be alleviated and resolved?

A: The solution to trade friction lies in constant negotiation and coordination. If negotiation and coordination doesn't resolve the problem, people can apply to the WTO for dispute resolution. Investing abroad is one of the most important strategies. During the process of globalization, Chinese enterprises can participate in international competition in many different ways. Some enterprises could transfer their production base to the consumption market and produce goods in another country or cooperate with local enterprises. For example, enterprises that are restricted by quotas might be able to relocate their enterprises abroad. Through cooperation, we can also alleviate pressure on local enterprises and avoid trade friction. In recent years, many Chinese enterprises have made important achievements in this field. The encouragement of the government has also yielded some positive results. Now Chinese enterprises can cooperate with Asian or African countries that have spare land and a similar culture to China.

Improve quality and maintain product reputation

Q: What measures should be taken to ensure the quality of domestic products?

A: In fact, many problems that have appeared in the international market are the extension of problems in the domestic market. Therefore, to ease trade friction, China should spend more time reflecting on the domestic situation. The Chinese government, Chinese enterprises and trade association should be aware of their own problems and correct them quickly. Many industries currently have an excessive production capacity and this causes market confusion. Once this problem is extended to export, it can cause trade friction. Chinese products often come up against technical tariffs: some of these are unreasonable but some are fair. Only when Chinese enterprises are continually working to improve the quality of their products can they maintain a good reputation and position in the international market.

Policies, regulations and guiding enterprises

Q: In the case of trade friction, what does the government do?

A: Dealing with trade friction is a long and complicated task. The government is immediately involved in any kind of trouble. The government plays a major role in easing trade friction and regulating the domestic market. Making policies as well as guiding and regulating enterprises is one of the most important roles of the government. To effectively resolve disputes and ease friction with trading partners is the central government's responsibility in cooperation with enterprises. Both parties must work to alleviate trade friction, which may require ongoing negation. They should cooperate with relevant experts and lawyers to develop specific strategies that will ease any friction.

By People's Daily Online