ImettheTierneys,whoarefromtheUS,lastweekataFordhamChinaBusinessForumhostedbytheChinaCentreforEconomicResearch(CCER)atPekingUniversity.
ThoughscoresofmajorChineseexporterswillescapethebruntofsteeptariffs,tensofthousandsofChinesefurnituremakers,mostofthemsmallandprivatebusinesses,willbesubjecttoanti-dumpingdutiesofuptonearly200percent.
FiercedomesticcompetitionhasalreadyforcedmostChinesefurnituremakerstostrugglehardforsurvival.TheUnitedStates'discriminativeanti-dumpingdutieshavepracticallydeprivedmanyofthemofaccesstooneoftheirmajoroverseasmarkets.
However,theyaresurelynottheonlyoneswhowillsufferfromtheprotectionistanti-dumpingduties.
TheforumatwhichImettheTierneysfeaturedextensivedialoguesbetweenChinesescholarsandUSexpertsandbusinessleadersonthebilateraltraderelationsbetweenChinaandtheUnitedStates.
IwasattractedtothisforumbyabeliefthatitwasagoodchancetoimprovemyunderstandingoftheUSperspectiveintheongoingdisputeoverSino-UStradeissues.
Tomysurprise,whenIaskedThomasTierneyforhiscommentsontheJune3publichearingheldbytheUSCommerceDepartmentonChina'srequestformarketeconomystatus,heshowedalookoftotalignorance.
Hiswife,MaureenA.Tierney,associatedeanoftheSchoolofBusinessatFordhamUniversity,quicklyexplainedtomethatherhusbandwasnotatradeexpert.Heisacomposer.
"Oh,great.ActuallyIjustwanttoknowyourviewsonChina'stradepolicy,justasindividualUSconsumers,"Ireplied.
Thistime,theybothenthusiasticallyelaboratedontheirfavourofhighqualityproductswithcompetitiveprices,justlikeotherconsumersaroundtheworld.
Itisnaturalthatthecouplealsonoticedthat"made-in-China"productshavefloodedUSstoresinrecentyears.
ThecouplemadecleartheyhavenoparticulardisfavourtowardimportsfromChina.Infact,theyjustwanttopurchasehighqualityproductsregardlessoftheirorigin.
Nevertheless,whenItoldthemthestrongoppositionvoicedby10USindustrialandtradeunionrepresentativeswithoutanysingleconsumervoiceatthepublichearing,theybothshowedastonishment.
MaureenTierney'sanswerwasthought-provoking.ShesaidtheUnitedStateswasalwaysengagedintradewarswithsomecountry,sayJapan,adecadeago.ButsuchahabitdefinitelydoesnotjustifytheUnitedStates'wieldingtheheavyanti-dumpingweaponagainstChina.
ThankstoChina'srapidriseasaglobalmanufacturingbaseinrecentyears,theUnitedStateshasincreasinglyresortedtoprotectionistmeasurestoreduceitsenlargingtradedeficitwithChina.
Since2001,theUnitedStateshasissued22anti-dumpingproceduresagainstawiderangeofChineseindustries-farmorethananyothercountry.
TheunderlyingcausesbehindtheUnitedStates'hugetradedeficitwithChinaarethesoaringforeigninvestmentthatChinahasabsorbed,China'sboomingprocessingindustriesandtheUnitedStates'strictcontrolonhigh-techexportstoChina,pointedoutHaiWenwithCCER.
Multinationals'massiveinvestmentinChinahassubstantiallyenhancedthecountry'sexportcapacity.Foreign-fundedenterprisescontributetomorethanhalfofChina'sexportstoday.
China'srelativelyinexpensiveandskilledlabourforcehasenabledthecountrytodisplaysuperiormanufacturingprowessintheprocessingindustries.
AndtheUnitedStates'exportcontrol,resultingfromitsoutdatedColdWarmentality,hasputthecountryatadisadvantageintheglobalcompetitionforChina'sexpandingdemandfortechnologicalimports.
Giventheirdifferentcomparativeadvantages,ChinaandtheUnitedStatesobviouslyshouldfocusrespectivelyondoingthosethingstheydobest,thosethingswheretheirsuperiorityisthegreatest.
Unfortunately,thelatestUSanti-dumpingcaseagainstChinesefurnituremakersdemonstratestheUSGovernment'sreluctancetoacceptthebasiceconomicsunderpinningfreeinternationaltrade.
SuchaprotectionistattitudehasfuelledUSindustriestofileaslewofanti-dumpingsuitsaimedatChinesecompanies.
AkeyreasonwhyChinahassteppedupitseffortstoobtainmarketeconomystatusisjustbecausesomeofitstradepartnersliketheUnitedStateshaveincreasinglyabuseditsnon-market-economystatusinanti-dumpingcases.
China'sstatusasanon-marketeconomyallowstheUSCommerceDepartmenttolookatproductioncostsinotherhigh-costcountrieswhenitevaluateswhetherimportsfromChinaareunfairlypricedintheUSmarket.
However,protectionismwillonlybeacureworsethanthedisease.
ThinkaboutwhatwillhappenwhenUSconsumersliketheTierneysdiscoverthattheymustpayahigherpriceforbedroomfurnituremerelyforthesakeofsomeUSmanufacturers'profitability.
Ifficklebuyerstightentheirspendinginthefaceofhigherpricesinthemarket,theUSeconomicrecoverycanhardlylastlong.
(Zhu Qiwen)
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