What Are Trade Sanctions?

Trade sanctions (trade sanctions) are acts by one or more governments to adopt tough measures against another country in order to sever the economic and trade relations between them. Since Obama took office, the US government has conducted at least ten "anti-dumping and countervailing" investigations of Chinese products. China has repeatedly expressed dissatisfaction with U.S. tariffs on Chinese exports, saying that such trade protection measures hinder free trade.

Trade sanctions

On December 30, 2009,

in 2009,

Researcher Zhang Yansheng, director of the Foreign Economic Research Institute of the National Development and Reform Commission of the People's Republic of China, pointed out in a visit to Chinanews.com that four factors have caused China to become the biggest victim of global trade protection, including international factors and domestic factors.

Zhang Yansheng said that after this crisis we have held several summits, and at each summit we call on all countries to agree to oppose global trade protectionism. We have drawn a curve. From this curve, we can see that the better the global GDP growth, the less global protectionism; the worse the global GDP growth, the more protectionism will rise. When the global economy is bad, countries are using protectionism in order to compete for smaller and smaller cakes.

In this process, China is the biggest victim. There are four factors:

First, it is because China's protectionist cases account for a much larger share of global cases than China's exports account for.

Second, compared with Germany, China's trade and Germany's trade account for the highest proportion of global trade. However, German trade is dominated by intraregional trade, and intra-European trade accounts for 53%. Trade with the United States is secondary. This is equivalent to intra-European trade. It does not generate very intense trade frictions, so German trade frictions are relatively small. China's main products are sold to Europe and the United States, so the proportion of our trade friction will be very large.

Thirdly, our research finds that German trade products are mainly intermediate products, mainly parts and components, and sells the parts and components that must be in the middle of production. And most of China's export products are final consumption, which are all low-end products, so they face consumers directly. This gives the local people and businesses the impression that we are taking his cheese, and trade friction will be very heavy at this time.

Fourth, the products that are more concentrated in protectionism are steel, non-ferrous metals, chemicals, and textiles. These products are products that are more concentrated in global protectionism, and these products are precisely products with severe overcapacity in China. Therefore, these aspects determine that China will become the biggest victim of trade protection.