Previous global economic crises were usually accompanied by frequent trade disputes. For example, the United States erected a large-scale tariff at 1930, which triggered a retaliatory global trade war. During the two oil shocks of1970s and1980s, when major economies tried to increase their exports by devaluing their currencies, trade frictions appeared. After the 1997 Asian financial crisis, anti-dumping actions, countervailing duties and other protectionist measures increased significantly.
The financial crisis is now spreading to the real economy, hitting industries such as manufacturing and service industries. In almost all countries, factories are closing and unemployment is rising, which has caused political pressure and social problems. More and more governments use "economic security" as an excuse to strengthen their intervention in their own economies and protect fragile domestic industries in order to curb imports from other countries, especially emerging market countries.
Trade protectionism is different from legally acceptable trade protection measures. This is an abuse of the remedies provided by multilateral trade rules. This protectionism is evolving into a more complex and hidden form, from traditional tariff and non-tariff barriers to technical barriers to trade, industry standards and industry protectionism.
With the deterioration of the economic crisis, we must be cautious even when adopting trade protection measures in line with the rules of the World Trade Organization. At the G20 financial summit held in 1 1 in 2008, world leaders called on countries to resist trade protectionism and promised not to set up new trade and investment barriers. This message was strongly echoed by the APEC summit at the end of last year and the World Economic Forum held in Davos last month.
History tells us that trade protection measures will not only hurt other countries, but also hurt the countries that initially set up trade barriers.
In response to the Great Depression, the United States passed the smoot-Hawley Act in 1930, which greatly increased the import tariffs on more than 20,000 kinds of foreign products, triggering protectionist retaliation from other countries. Faced with this crisis, other countries implemented beggar-thy-neighbor policies, reducing the global trade volume from $36 billion in 1929 to $0/200 million in 19 32. Among the victims, the biggest victim is the United States itself, and its exports have shrunk from $5.2 billion in 1929 to $0.2 billion in 1932. Even in the United States, the smoot-Hawley Act is widely regarded as a catalyst to aggravate the impact of the Great Depression.
Global trade is now in trouble. Due to the shrinking external demand caused by the economic crisis, the export growth of major trading countries has fallen sharply, or has shrunk sharply. In 200 8 1 1 month, German exports decreased by 10.6% year-on-year, the highest monthly decline since 1990. China also experienced negative export growth in 1 1 month, which decreased by 17.5% last month compared with the same period of last year. Protectionist policies will make things worse, and the consequences are unpredictable.
At the worst of the crisis, it is essential that all countries should not blame each other or pursue their own interests at the expense of other countries. The financial crisis reflects the imbalance of global economic structure and the chronic disease of financial risk accumulation, and there is no quick solution. Strengthening consultation and cooperation and maintaining smooth international trade are the fundamental interests of every country. Healthy international trade helps to revive the world economy. During the Great Depression, the United States recovered from economic difficulties because the franklin roosevelt administration implemented the New Deal and avoided protectionism.
Today's unprecedented financial crisis has had a serious impact on China and other countries. China's economic growth has slowed down, exports have fallen sharply, and unemployment pressure has increased. Nevertheless, China still firmly believes that trade protectionism is not the solution to the world's problems. In 2008, with the global trade shrinking, China imported goods worth 1. 1. 1.33 trillion dollars from all countries in the world, an increase of 1.08% over the previous year. These imports have promoted the economic development of China's trading partners. Since the outbreak of the crisis, the China government has decisively launched a series of measures aimed at stimulating domestic demand. In view of the size and openness of our country, the growth of China's domestic market can be translated into greater market potential and investment opportunities in other countries. This year, China will continue to increase imports and send purchasing delegations abroad to purchase equipment, products and technology on a large scale.
China has always pursued a win-win open policy and advocated international economic cooperation. We advocate that the Doha Round of global trade negotiations should be promoted in a way that conforms to the interests of all members and the established multilateral trading system. China is willing to work with other countries in the world to jointly meet today's challenges, cooperate in coping with the financial crisis, and lead the world economy into a new period of prosperity.
Trade protectionism cannot save the world economy.
For trade protectionism, the global financial crisis is undoubtedly a catalyst. Recently, with the deterioration of the global economic situation, some countries have a tendency of self-fear, self-interest and self-protection. People of insight are worried about this and call on countries to prevent the recurrence of trade protectionism and economic isolationism when launching economic stimulus plans.
All previous global economic crises are often accompanied by the high incidence of trade disputes. 1930, the us government raised tariffs on a large scale, triggering a retaliatory trade war on a global scale. During the two oil crises in 1970s and 1980s, major countries allowed their currencies to depreciate to expand their exports, which triggered trade frictions. 1997 after the Asian financial crisis, the cases of anti-dumping, countervailing and safeguard measures have increased significantly around the world.
At present, the financial crisis has spread to the real economy such as manufacturing and service industries. The closure of factories in various countries has increased sharply, the unemployment rate has risen, and political pressure and social problems have followed. More and more countries strengthen government intervention in the economy on the grounds of "economic security" and protecting their weak industries, which hinders the export of enterprises from other countries, especially emerging countries.
Trade protectionism is different from proper trade protection measures, and it is an abuse of relief measures in multilateral trade rules. From the traditional tariff and non-tariff barriers to technical barriers to trade, industry standards and industrial protectionism, the current forms of trade protectionism are more complex, diverse and hidden. In the context of the worsening crisis, even the protective measures that conform to WTO rules should be used with caution, which has become the common sense of all countries. At the G20 Financial Summit held on June 5438+065438+ 10, 2008, leaders of various countries called for resisting trade protectionism and promised to avoid setting up new trade and investment barriers in the coming year. The APEC leaders' meeting at the end of the year and the Davos annual meeting of the World Economic Forum at the beginning of this year once again issued strong voices against protectionism.
History is a mirror. Any trade protection measures against other countries will not only hurt each other, but also hurt themselves in the end. Experience tells us that large-scale trade protection measures will make the already severe economic situation more difficult under the financial crisis.
1930, in response to the economic crisis, the United States promulgated the "smoot-Hawley Tariff Act", which greatly increased the import tariffs on more than 20,000 kinds of foreign goods, causing protectionist retaliation from other countries. In the face of the crisis, countries beggar their neighbors, and the global trade volume has shrunk dramatically, from $36 billion in 1929 to $ 1932, and the United States itself has suffered greatly. The total export volume has shrunk from about $5.2 billion in 1929 to $65,438 in 1932. Even in the United States, this bill is widely regarded as a catalyst for the intensification of the Great Depression.
Nowadays, the global trade situation is quite grim: the economic crisis has led to a decline in external demand, and the export growth rate of major trading countries has dropped sharply, or even shrunk sharply. Germany's exports in June 2008 +065438+ 10 decreased by 10.6% compared with the previous month, the largest monthly decline since June 2008 +0990. Since June 2008 165438+ 10, China's exports have been continuously negative, and in June 2009, exports decreased by 17.5%. If trade protectionism runs rampant in the future, it will make the grim situation worse and the consequences are unpredictable. We should seriously consider whether the world can bear such consequences and whether it is worth bearing.
In times of crisis, it is important for all countries to work together to overcome difficulties instead of blaming each other and beggar-thy-neighbor. The financial crisis is the result of the imbalance of global economic structure and the long-term accumulation of financial risks, which cannot be achieved overnight. At present, it is in the fundamental interests of all countries to strengthen consultation and cooperation and keep international trade channels open. The healthy development of international trade is an important force to promote the recovery of the world economy. At that time, the Roosevelt administration implemented the New Deal and broke away from trade protectionism, leading the American economy out of the trough and promoting the growth of the global economy.
In this unprecedented world financial crisis, China, like other countries, suffered a severe impact. Since the third quarter of last year, economic growth has slowed down, exports have fallen sharply, and employment pressure has increased. Even so, China still firmly believes that trade protectionism is a dead end. In the case of shrinking global trade, in 2008, China imported goods from various countries 1 133 1 billion US dollars, an increase of 18.5%, which promoted the economic development of its trading partners. Since the outbreak of the crisis, the China government has decisively introduced a series of measures to expand domestic demand. As an open country, the improvement of domestic demand in China can provide more market space and more investment opportunities for other countries. This year, China will continue to expand imports, actively organize enterprise purchasing delegations, conduct large-scale overseas purchases, and import equipment, goods and technology.
China has always pursued a win-win opening-up strategy and advocated international economic cooperation. We advocate actively promoting the Doha Round negotiations in accordance with the interests of all countries and the multilateral trading system. China is willing to work with other countries in the world to meet challenges through openness, cope with crises through cooperation, overcome difficulties together, and push the world economy towards new prosperity.