Home> Business Review 2013> column1

Business Review 2013 (XVI): Cope with Trade Frictions, and Maintain a Fair Trade Environment

Since 2013, the commercial departments have conscientiously implemented the decisions and arrangements of the Party Central Committee and the State Council to actively cope with trade frictions and properly implement trade remedy investigations, have participated in establishment of international rules and made efforts to maintain a fair trade environment, which have achieved remarkable results.

I. Properly coped with trade frictions

As at December 24, 2013, China suffered 89 trade remedy investigations initiated by 19 countries (regions), involving value of USD 3.619 billion, and suffered 17 cases of 337 investigations initiated by the U.S..In the face of the severe situation of trade friction, the Ministry of Commerce, in concert with local commercial departments, business associations and related enterprises, and have made positive achievements in response to trade frictions.

(A) Properly solve China–EU trade disputes on PV products. China and EU, after several rounds of tough negotiations, finally reached a price commitment.The largest trade remedy investigation that China has ever suffered to date has been properly settled, which obtains time and space for the transformation and upgrading of China's photovoltaic industry.

(B) Properly cope with major cases. By comprehensively carrying out political negotiations, legal defense and industrial cooperation, positive results were achieved, and a number of investigations including anti-subsidy investigation initiated by the U.S. against imports of warm water shrimp originated in China, anti-dumping and anti-subsidy investigations initiated by the U.S. against imports of hardwood plywood originated in China and anti-dumping and anti-subsidy investigations initiated by Canada against imports of galvanized steel wire originated in China were closed without damages and anti-dumping investigations against imports of large diameter seamless steel pipe and anti-subsidy investigations against imports of bicycle originated in China initiated by EU were terminated.

(C) Actively cope with trade frictions with the developing countries. The issue of expiration of the agreement with Turkey on product discipline under the special protection framework was successfully solved; the safeguard measures initiated by India against imports of Methyl Acetoacetate originated in China and the safeguard measures initiated by Thailand against imports of woven fabrics originated in China were terminated; some Chinese companies involved in the anti-dumping investigations initiated by Malaysia against imports of polypropylene film and rod originated in China gained zero tax rate; China-Mexico agreement on footwear products was ensured to be implemented smoothly; Mexico's termination of its review against imports of bike originated in China was promoted; Brazil's closure ofno measures to be taken in anti-dumping investigations against imports of round brass originated in China was pushed forward, and it terminated its review of anti-dumping investigations against imports ofelectric irons and drills originated in China and Peru is pushed forward to properly address its investigations against imports of garment imports originated in China in a constructive manner.

(IV) Strengthen pre-intervention of trade frictions. Through implementing early warning of trade frictions, and strengthening negotiations with overseas investigating authorities, EU is pushed forward to suspend its anti-dumping and anti-subsidy investigations against imports of wireless communications equipment originated in China, and the anti-dumping and anti-subsidy investigations initiated by the U.S. against imports of large washing machine originated in China and anti-subsidy investigations initiated by South Africa against imports of coated paper originated in China were successfully avoided.

(E) Effectively cope with 337 investigation initiated by the U.S. By negotiating with the U.S., and providing Huawei, ZTE and Sany and other enterprises involved with legal services, Huawei and ZTE won the preliminary investigations of 337 investigationinto the wireless 3G device and wireless consumer electronic device.

II. Implemented trade remedy measures according to the law

Over the past year, the Ministry of Commerce has positively launched trade remedy investigations according to the law so as to maintain the security and interests of domestic industries, and strive to foster a fair trade environment. According to WTO, China has launched 11 anti-dumping investigations and 1 anti-subsidy investigation as at December 24, involving value of USD 2.403 billion and including such products under investigation as pulp, alloy-steel seamless tubes and pipes for pressure-bearing under high temperature, perchlorethylene, wine, single-mode optical fiber and tertiary butylhydroquinone. The Ministry of Commerce has made 5 preliminary rulings, 4 final rulings, 1 interim review ruling, 3 final review rulings and 1 review ruling on new exporters. In addition, the Ministry of Commerce has started final review of anti-dumping investigations against imports of acetone, terminated anti-dumping investigation against coated paperboard and cooperated with Department of Treaty and Law in coping with the disputes at WTO on imports of high-performance stainless steel seamless tubes and grain-oriented electrical steel originated in China.

III. Actively participated in negotiations on bilateral and multilateral rules and trade remedy cooperation

In order to fight for China’s right to establish international trade rules, and deepen communication and cooperation with China’s trading partners and to further improve China's foreign trade environment, the Ministry of Commerce has involved in negotiations on bilateral and multilateral rules. The Ministry of Commerce has completed negotiations on the section of trade remedy in China-Iceland Free Trade Area and China-Switzerland Free Trade Area, which has strongly pushed forward the signing of the said agreements; the Ministry of Commerce has involved in ECFA and RCEP negotiations, and negotiations on China-ROK Free Trade Area, China-Australia Free Trade Area and China-Japan-ROK Free Trade Area have achieved positive progress. Conferences on trade remedy cooperative mechanism with Turkey and Morocco respectively were held. The trade remedy cooperative mechanism with Thailand, which was the first one established with ASEAN countries was set up, and the Ministry of Commerce has made progress in establishing trade remedy cooperative mechanism with GCC; the Ministry of Commerce has pushed forward the signing of the Memorandum of Understanding on Establishing Trade Relief Cooperation Mechanism with the Ministry of Economic Affairs of Mexico during Chinese leaders’ visit to Mexico and made efforts to integrate the contents on trade disputes settlement mechanism and exchanges and cooperation among trade relief agencies into the Joint Communique Concerning the Third Meeting of BRICS Economic and Trade Ministers and the BRICS Trade and Investment Cooperation Framework.

IV. Vigorouslymade efforts on public information services and professional training

Reporton Trade and Investment Environmentin Different Countries, Report on Trade Frictions with China, Development in Response to Trade Frictions, Trade Remedy Trends, Monthly Report on Investment Environmentin Different Countries were compiled and distributed and information was timely published. Three training courses on coping with trade frictions were held in order to popularize the knowledge of fair trade, and enhance awareness and capabilities of industries and enterprises to protect their rights and interests by using international rules.


(All information published on this website is authentic in Chinese. English is provided for reference only.)