The Roots of the "Double Counter" Game in Sino-European Trade

[China Glass Network] The EU announced on May 14 that it will impose anti-dumping duties and countervailing duties on coated paper imported from China. This not only created a precedent for EU anti-subsidy against China, but also the first time for the EU to use dual trade for the same product in China. Relief. On the 16th, the Ministry of Commerce announced the preliminary ruling on the anti-subsidy investigation of imported potato starch originating in the European Union. Within three days, the sword of Sino-European mutual anti-dumping (anti-dumping and countervailing duties) made the Sino-European trade friction extremely dramatic.

Since the financial crisis, trade frictions between China and major trading partners have been on the rise. The objective factor is that China has grown into a world-leading trade power and has a large surplus with the United States and Europe. It has stimulated US and European trade relief to China to reverse trade imbalances. The subjective factor is that the United States and Europe have been deeply mired in financial crisis. It is necessary to make a breakthrough in domestic public opinion resentment and sustained release trade anxiety, and China has become an ideal punching bag.

Before 2010, the EU's bilateral trade friction with China only had a low-intensity "anti-dumping" "sLR" level. The EU's "double opposition" to Chinese-made coated papers highlights the EU's trade remedy for China has entered a period of high intensity.

In the future, China will face a more severe trade situation. The strict trade measures between the United States and Europe against China will be replicated by more major Chinese trading partners and will be followed by some developing countries. If the EU or US trade game with China is upgraded from friction to trade war, it does not rule out the induction of global trade protectionism, which will have a devastating blow to the existing WTO multilateral trading system.

This is not an alarmist. If we thoroughly study it, the EU's implementation of "double anti-" on Chinese coated paper is intriguing. On the one hand, the market share of Chinese-made coated paper in the EU is extremely low, only about 4%, which will not pose a threat to the EU industry. It is unreasonable to judge the “dumping” of Chinese enterprises; on the other hand, the evidence of countervailing subsidies from the European Union is also Can not afford to scrutinize. Most of China's paper-making enterprises are private enterprises, and their treatment in financing and taxes is far less than that of multinational companies from the European Union and the United States.

What's more, the European Union's commercial loans provided by Chinese state-owned banks to coated paper companies are also regarded as government subsidies, which is even less logical. Because Chinese state-owned banks are not only lending to coated paper companies, they are also lending to EU companies in China.

The "double-reverse" game between China and the EU is actually not at the technical level but at the structural contradiction. By relying on the mechanism platform of the WTO, the trade friction between China and Europe cannot be solved. In response to the "double opposition" of the EU, China cannot stop the counter-style game of one stroke and one type. The key is to let the EU recognize China's market economy status as soon as possible.

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