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Rational Understanding of Trade Frictions

Rational Understanding of Trade Frictions

Write: Nellie [2011-05-20]
With the expiration of Sino-American Trade Agreement of Textiles by 2008 year-end, the safeguard measures taken by WTO against China's textiles also came to a close. Developed countries tend to resort to new trade protectionism measures, such as anti-subsidies measure, product quality standards and corporate social compliance, to create frictions. On the other hand, due to the similar structures of exported products and technical levels, competition among developing countries becomes quite fierce. The global economic slowdown and contraction of the world trading have further intensified such fierce competition. As a result, developing countries, while scrabbling for the markets of developed countries, need to make more efforts on protecting their domestic markets. The trade protectionism measures adopted by developed countries against China have a major guiding influence on developing countries. In 2009, adverse factors, for example, the economic recessions of developed countries, the contraction of global trade and credit crisis impose unprecedented challenges on China's textile and apparel industry, but also bring an opportunity for the strategic adjustment of the industry.