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China firmly upholds global trade rules

By Zhong Nan, Jing Shuiyu and Ren Xiaojin | China Daily | Updated: 2018-08-08 09:57
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Defender of the WTO

China firmly upholds WTO rules and supports the multilateral trading system. Its support for the multilateral trading mechanism will play a crucial role in defending the WTO, especially when the international organization is facing threats from rising unilateralism, experts said.

One severe challenge is a member country taking restrictive measures against a trading partner based on Section 301 of the Trade Act of 1974 - a clause that violates the WTO rules, according to Wang, the vice-minister of commerce.

A research note from securities firm BOC International (China) Ltd said rising protectionism initiated by US President Donald Trump's administration violates the free trade principles of the WTO.

"China has an impeccable record in implementing the WTO rulings," said Xue Rongjiu, deputy director of the Beijing-based China Society for WTO Studies, noting that the country is by no means a "unilateralist". Instead, the nation always seeks solutions to trade disputes via WTO.

By April 2018, China had submitted 17 disputes to the WTO, of which eight have been concluded. Meanwhile, the WTO had filed complaints in 27 disputes against China, of which 23 have been concluded, according to the white paper.

"None of the complainants have requested retaliation against China," said Hong Xiaodong, director of the Department of WTO Affairs at the Ministry of Commerce.

China was among the first group of WTO members that ratified the Trade Facilitation Agreement, which is a key instrument to lower costs related to global trade. China also submitted its Information Technology Agreement expansion commitment to the WTO in September 2016, and started to implement its tariff cuts on related goods immediately afterward.

"China and the multilateral trading system stand together through thick and thin," said the white paper. The country has fully participated in the Doha Round negotiations and submitted or cosponsored more than 100 negotiation proposals.

Amid growing concerns over isolationism and protectionism, China in late June unveiled two shortened negative lists for foreign investors, one for nationwide implementation and one for its 11 pilot free trade zones, to reinforce the government's earlier pledges to continue promoting economic opening-up.

The two lists further ease market access for foreign investment in the service, infrastructure, financial, agricultural and energy sectors.

A negative list is a list of sectors where investment is prohibited; all other areas are presumed to be open.

Li Guanghui, vice-president of the Chinese Academy of International Trade and Economic Cooperation in Beijing, said that removing restrictions in the service sector is one of the highlights of the new negative lists.

Such moves will benefit foreign investors at a time when they have strong interest in participating in China's economic rebalancing, as the nation shifts toward a service-led economy, he said.

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