According to the latest report on China's Foreign Trade Situation (Fall 2012) released by the Ministry of Commerce, China is the biggest victim of trade protectionism. In the first three quarters of this year, China's export products encountered 55 foreign trade remedy investigations, mostly involving enterprises. It has been hit hard, and the financial crisis has continued to weaken external demand. Many Chinese export companies have seen a sharp decline in profits, and some companies will lose their overseas markets. Trade protectionism is becoming more and more complicated Recently, the Ministry of Commerce issued the "Report on China's Foreign Trade Situation (Fall 2012)". The report shows that China is the biggest victim of trade protectionism. In the first three quarters of this year, China's export products encountered foreign trade remedy investigations. Since then, the growth rate has increased by 38%, and the amount involved has increased by nearly 8 times. Among them, China's solar photovoltaic cells have encountered trade friction in many overseas markets, and exports have been severely hindered. It is reported that the US Department of Commerce made a final ruling on the "double anti-" case of China PV on October 10, and found that there were dumping and subsidies for the photovoltaic cells and components exported from China to the United States, and decided to impose high punitive tariffs. Recalling the concentrated outbreak of the “double-reverse†investigations by China, the United States and India in the third quarter of this year, it is difficult for domestic PV companies to be able to parry. The “two-outside†industrial structure has also caused more operating losses than other industry. However, photovoltaic products are only a microcosm of Chinese companies' protection measures against US trade this year. According to the "Beijing News" news on the 30th, the European Commission announced in August this year that the anti-dumping duties imposed on China's export of bicycles and bicycle parts will be extended to 2016; since mid-September, the EU has imposed a period of 5 on ceramic tiles imported from China. The punitive tariff for the year, the highest tax rate is 69.7%. In this regard, Wang Tianlong, an associate researcher at the China Center for International Economic Exchanges, said that the increase in trade protection measures against China in this round has a lot to do with the weak global economic growth. The economic downturn in major developed economies has led to a decline in domestic demand, leading to an increase in unemployment; in order to protect domestic enterprises and increase employment, trade protection will be implemented and import thresholds will be raised for other countries. In addition, the Ministry of Commerce data shows that in the first half of this year, China has encountered a total of 40 anti-dumping, countervailing and special insurance investigations initiated by 18 countries and regions, an increase of 38%. From the perspective of the country in which the case is filed, developing countries such as Brazil and India accounted for 70% of the total number of cases filed in China. The surge in trade frictions between emerging countries and China has become an important feature of this round of trade war. According to the Ministry of Commerce, after the European and American countries, the Indian Anti-Dumping Agency will also conduct anti-dumping investigations on Chinese-exported PV products. Indian solar manufacturers are calling for a 200% anti-dumping duty. On October 15, Mexico raised the Chinese textile and clothing subsidy policy. The consultation request under the WTO dispute settlement mechanism accused China of subsidizing textile and clothing enterprises by reducing or exempting some income tax, value-added tax and local taxes. Different from developed countries, the purpose of launching “double-reverse†investigations on Chinese products by emerging economies is to focus on developing their own related industries and reducing their dependence on foreign countries. This also makes their “double-reverse†scope wider. The attitude is also more determined. The Nanfang Daily reported that the Indian government has been trying to turn India into a solar product manufacturing center, but Indian solar companies have not benefited from government action. India's domestic solar manufacturing industry is not developed, and its domestic PV market relies heavily on imports. The "Made in China" transformation is just the time to imagine. The "good quality and low price" that once made "Made in China" popular in overseas markets has now become the spearhead of international trade protectionism against "Made in China", resulting in many domestic exports. Enterprises are caught in the predicament of "trade wars" and it is difficult to get out in the short term. According to customs data, from January to September this year, China’s total import and export value was 2,842.47 billion US dollars, an increase of 6.2% compared with the same period of last year; of which exports increased by 7.4% and imports increased by 4.8%. This still has a certain gap with the 10% growth target set at the beginning of the year. Despite the series of “steady growth†policies introduced this year, the monthly foreign trade data showed signs of stabilization and recovery in September. However, both the General Administration of Customs and the enterprises are cautious about the future foreign trade situation. This year, the trade war against Chinese companies has exploded, especially the “double-reverse†investigations conducted by the European, American and Japanese countries on the Chinese PV industry. The successive bad news has already made some domestic enterprises unable to eat. After Trina Solar was allegedly laid off, on the evening of September 17, Suntech announced that the global PV industry's situation has continued to deteriorate, especially considering the impact of US “double opposition†and EU anti-dumping investigations on Chinese manufacturing. The company decided to suspend its Production of some battery factories in Wuxi. Some insiders said that at present, domestic PV companies are losing money, which is less than the loss, and the entire industry is facing a collapse. Some SMEs said that due to increased trade barriers and other reasons, the cost has increased, and some foreign orders have been transferred to lower-cost Southeast Asian countries. In this regard, the Ministry of Commerce reminds domestic foreign trade enterprises to respond rationally to trade frictions. On the one hand, by transforming the development mode of foreign trade, speeding up the transformation and upgrading, improving the core competitiveness of the industry, raising the price of products, jumping out of the circle of low-price competition, and changing the "winning by price" as "winning by quality." On the other hand, it is necessary to standardize internal financial and management processes, train professionals who deal with trade frictions, establish and improve trade friction early warning mechanisms and rapid response mechanisms to avoid being caught off guard when encountering trade frictions.
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