The ACCA endorses a clear understanding of protectionism due to the fact that trade restrictions are a growing part of how global politics function. Wan Jifei, Chinese official and outspoken critic of the policy, believes that this impact is largely negative.
He argues, “Trade protectionism is shortsighted and narrow-minded, and it cannot fundamentally address the problems of unemployment and economic growth worldwide. Free trade is the engine of national economic growth.” Other Chinese representatives, including President Hu Jintao, have supported these claims against protectionism.
CIMA online has often found that Beijing ironically engages in exactly this sort of protectionist behavior.
China has also been the target of recent scrutiny by US Pres. Barack Obama for illegal trade practices involving cars and car parts.
Republican presidential candidate Mitt Romney has pledged to constituents that he will treat China as a “currency manipulator” after his election. ACCA online reports that many Americans have expressed outrage over the fact that Chinese exporters are using the low value of the Yuan to gain an arguably unfair advantage in the market.
China however believes that protectionist policies have had a negative effect on their economy. To counter this, it will attempt to mediate a free-trade pact involving South Korea and Japan.
Some believe that US critics have little credit on the issue because they have recently had so many international trade issues of their own.
President Obama is already committed to delivering 20 percent tax credit for firms that bring overseas jobs to the US.
On the other hand, as CIMA points out, the US has opened up trade liberalization as a result of new negotiations with Colombia.
In spite of all of these developments, the US and China continue to find new trade issues on which to dispute.
Anti-dumping tariffs on Chinese solar panels have sparked an EU investigation into China’s trade affairs.