NOW IS THE TIME TO EMBRACE FREER TRADE WITH CHINA

tauringhuang.

Jack Ma
Tuesday, July 29, 2008
  

  
As
the US election approaches and the Doha round of trade talks has resumed this week in Geneva, there is much debate about the future of global trade and the emergence of China as a trade leader. The timing of the Doha round could not be more significant, as an economic slowdown has given rise to a new wave of protectionist sentiment. Yet it is important for world leaders to resist calls for protectionism and seize the moment to lift trade barriers. Embracing freer trade – with China as an engine of global economic growth – is the best chance to jump-start economies and provide job opportunities in both developed and developing nations.

There are two factors sparking these debates. First, in any economic slump fear can easily give rise to protectionist policies on tariffs and quotas. But these restrictions can be destructive and further slow down the economy.

Second, unease about China's rise as an economic power has made people think that business and jobs are all moving to that country, but not many know that trade with China is generating employment opportunities for Europe and the US.

tauringhuang.

If one looks beyond the headlines, there is a growing trend often missed: China's role in the global market is evolving from being the top manufacturing hub and exporter to becoming a powerful global buyer. This new trend is just beginning and needs the support of world leaders, as it is only through greater economic openness that they can help lift the global economy.

Over the past two decades, trade with China has gone through big changes. Bold economic reforms as well as the country's entry into the World Trade Organisation has allowed China to supply cheaper goods to Europe and the US, and helped western companies to cut costs by moving their production lines to China.

Now we are in a new phase, where China is buying more from the global market. China's most recent trade figures indicated a continued rise in exports by 18 per cent from a year ago to $121.53bn (