World Trade Organization | CHINDIA ALERT: You'll be living in their world, very soon

16/01/2013

* China trade surplus with U.S. may be a quarter smaller

“Lies, lies and statistics”!

Or as in Through the Looking Glass:

“When I use a word,” Humpty Dumpty said, in a rather scornful tone, “it means just what I choose it to mean – neither more nor less.”

“The question is,” said Alice, “whether you can make words mean so many different things.”

Reuters: “The new estimate is one of the key findings of an ambitious project by the OECD think-tank and the World Trade Organisation (WTO) to present a truer picture of underlying trade flows in an age of global supply chains when intermediate inputs can cross borders several times during the manufacturing process.

A man walks in a shipping container area at the Port of Shanghai April 10, 2012. REUTERS/Aly Song

The political purpose of the exercise is to reduce protectionist pressure by demonstrating that governments are shooting themselves in the foot if they raise barriers to imports because, in doing so, they are also hurting their own exporters and competitiveness.

Angel Gurria, secretary-general of the Organisation for Economic Cooperation and Development (OECD), said the value-added approach challenged the conventional wisdom regarding trade.

“Today, we have to think about goods and services as ‘made in the world’, Gurria said.”

via China trade surplus with U.S. may be a quarter smaller | Reuters.

Posted in China alert, Economics, exports, free trade, WTO | 1 Comment »

Tags: European Union, global supply chains, OECD, Organisation for Economic Co-operation and Development, trade balance, world trade organisation, World Trade Organization, WTO

30/11/2012

* China-backed payment processor to accelerate global expansion

Visa and Mastercard beware!

Reuters: “China’s state-backed electronic payment services giant, China UnionPay, launched an international arm tasked with speeding its expansion overseas, heating up competition with rivals such as Visa Inc (V.N) and Mastercard Inc (MA.N).

The logo of the China UnionPay is seen at a bank in Taiyuan, Shanxi province July 20, 2012. REUTERS/Stringer (CHINA - Tags: BUSINESS)

The move underscores UnionPay’s growing global ambitions, and follows a World Trade Organisation (WTO) ruling that China discriminates against foreign card companies by favoring UnionPay in the home market.

UnionPay, China’s dominant payment card supplier, is looking to expand the number of shops and outlets overseas that will accept its cards and also grow the number of partner banks issuing UnionPay-branded cards. The move would increase its business, assist inbound and outbound travelers and is also aimed at promoting the use of the yuan as a global currency.

“UnionPay’s internationalism provides convenience to Chinese residents and companies going overseas. Also it provides a new payment option for overseas residents and companies,” Liu Shiyu, deputy governor of the People’s Bank of China, said at the opening ceremony of UnionPay’s unit.”

via China-backed payment processor to accelerate global expansion | Reuters.

China Unicom launches NFC-based mobile wallet (zdnet.com)
Transactional Banking and Mobile Payments in China: An Emerging Opportunity (knowledge.wharton.upenn.edu)
Union Pay gets busted (chinatrack.typepad.com)

Posted in Affluence, China alert, Economics, GeoPolitics, Tourism | Leave a Comment »

Tags: Business, China, China UnionPay, economy, MasterCard, technology, UnionPay, Visa, World Trade Organization

20/09/2012

* China worries spur Mexico stock market flows

Reuters: “Mexico has been on the wrong side of China’s economic boom for the last decade, but is now seeing an upturn in its fortunes as the Asian powerhouse’s economy slows and international stock pickers look to hedge their bets.

Fund managers are shifting the composition of their portfolios to protect themselves against further slowing in China. That is bad news for exporter Brazil, but good news for Mexico, which has low trade exposure to Asia and which is starting to claw back the export share and wage competitiveness it lost to China.

After China joined the World Trade Organization in 2001, Brazil boomed due to a seemingly endless Chinese appetite for soybeans and iron ore, while Mexico’s manufacturers struggled to compete with cheap goods in their main U.S. market.

Brazil has grown almost twice as fast as Mexico in the last decade and overtook its northern rival as Latin America’s biggest economy in 2005, becoming a darling of investors.

But a recent soft patch in Brazil and a slowdown in China’s breakneck growth are prompting some investors to take another look at Mexico’s strong ties to the United States and the chances its new president will undertake major reforms that could push up growth.”

via Analysis: China worries spur Mexico stock market flows | Reuters.

Nothing ever stands still. At one time Japan was the destination of all new and high tech; then came South Korea’s turn; soon followed by China. But the laws of physics say that everything seeks equilibrium and the lowest common denominator (water seeks its own level). So as China’s minimum wages rise (by law – at 10 to 15% pa), other countries that appeared to be expensive are slowly becoming competitive. China, of course, will not stand still either; but will move up the value chain, as it has been doing steadily over the last 5 to 10 years.

Mexico: The China of the Americas (minyanville.com)
As China’s wages climb, Mexico stands to win new manufacturing business (chinadailymail.com)

Posted in Economics | 2 Comments »

Tags: Asia, Brazil, China, economic boom, Latin America, Mexico, minimum wages, South Korea, United States, World Trade Organization

17/09/2012

* China files WTO complaint against U.S. CVDs

Xinhua: “China on Monday requested to negotiate with the U.S. over countervailing duties (CVDs) levied by it against Chinese tyres within the trade dispute settlement mechanism of the World Trade Organization (WTO).

“Through consultations within the WTO trade dispute settlement mechanism, the Chinese side hopes the U.S. can correct its wrong-doing and properly deal with concerns from China,” said Shen Danyang, a spokesman for the Ministry of Commerce (MOC).

In a statement on MOC’s website, Shen said China has reiterated its stance on different occasions that it resolutely opposes the abuse of trade remedy rules or trade protectionism. He added that China will exercise its rights as a WTO member to protect the legitimate interests of domestic industries.

China’s request for consultation came after the U.S. Court of Appeals for the Federal Circuit passed a so-called GPX bill earlier this year to authorize the U.S. Department of Commerce (DOC) to apply CVDs to “non-market economy” countries.

The bill, a remedy for the Tariff Act of 1930, overturned a previous federal court ruling that the U.S. DOC did not have legal authority to impose CVDs on goods from non-market economy countries and gives an application retroactive period since Nov. 20, 2006.

Shen said the U.S. has for many years kept launching countervailing probes against Chinese products without legal support of U.S. laws.

The GPX bill will place Chinese enterprises under an uncertain legal environment and violates WTO rules on transparency and procedural justice, Shen said.

According to the MOC, the trade dispute on tyres involves 24 types of tyre products worth about 7.23 billion U.S. dollars.”

via China files WTO complaint against U.S. CVDs – Xinhua | English.news.cn.

Posted in Anti-dumping, China alert, Economics, Politics, WTO | 1 Comment »

Tags: China, Ministry of Commerce, United States, United States Department of Commerce, World Trade Organization, WTO

17/09/2012

* United States to File W.T.O. Case Against China Over Cars

NY Times: “The Obama administration plans to file a broad trade case at the World Trade Organization in Geneva on Monday accusing China of unfairly subsidizing its exports of autos and auto parts, a senior administration official said late Sunday, in a move with clear political implications for the presidential elections less than two months away.

The W.T.O. case accuses China of providing at least $1 billion worth of subsidies from 2009 to 2011 for exports of autos and auto parts. While China exports virtually no fully assembled cars to the United States, it has rapidly expanded exports to developing countries, and those exports compete to some extent with cars exported or designed in the United States.

President Obama plans to announce the move on Monday during a visit to Ohio, one of the most important of the battleground states and a place where the president is trying to capitalize on his bailout of the auto industry. A poll by NBC News, The Wall Street Journal and Marist College last week showed Mr. Obama building a significant lead in Ohio.”

via United States to File W.T.O. Case Against China Over Cars – NYTimes.com.

Posted in China alert, Economics, exports, Trade | 1 Comment »

Tags: China, china exports, transportation, United States, World Trade Organization

17/07/2012

* WTO: China discriminates against foreign card companies

BBC News: “The World Trade Organisation has ruled that China discriminates against foreign credit-card and debit-card providers.

A panel of the trade body said China maintains a monopoly on yuan-denominated payment cards which breaks WTO rules. Only one company, China UnionPay, is allowed to process domestic currency transactions. This limits foreign providers such as Visa and Mastercard.

There is a 60-day period in which either side can appeal against the ruling.

The Obama administration first lodged the complaint in 2010.

US companies have been trying to get greater access to the massive China market.

“Today’s win highlights that tackling unfair Chinese trade practices has been a priority of this president”, Jay Carney, White House press secretary

Currently, they can only issue cards in partnership with Chinese banks and China UnionPay.

Visa said in a statement that the company is “hopeful that this ruling will pave the way for international payment companies to participate in the domestic payments marketplace in China”.

The decision by the WTO is being hailed as a “win” by the US government. The trade gap with China has become a campaign issue in the upcoming elections.

“Today’s win highlights that tackling unfair Chinese trade practices has been a priority of this president,” said Jay Carney, White House press secretary.

Tim Reif from the US Trade Representative’s office said the ruling would support about 6,000 jobs if it goes through.

However, the WTO did not agree with all the claims raised by the United States.”

via BBC News – WTO: China discriminates against foreign card companies.

Posted in China alert, Economics, free trade, GeoPolitics | Leave a Comment »

Tags: China, China UnionPay, Office of the United States Trade Representative, politics, travel, United States, Visa, World Trade Organization, WTO

11/07/2012

* Socialist market economy turning point for China

Xinhua: “Good education, housing, medical care and insurance are within the reach of more Chinese since the adoption of a market economy, according to a Tuesday commentary in the People’s Daily, the flagship newspaper of the Communist Party of China (CPC).

The formation and improvement of China’s socialist market economy has reshaped the lives of 1.3 billion people and exerted an influence on the future of the whole world, wrote Ren Zhongping.

In the past 20 years, the most populous nation has become the world’s second-largest economy and has stood among middle-income countries in terms of its per capita gross domestic product, Ren said.

China turned itself from a seller’s market to a buyer’s market and became the world’s biggest exporter and a member of the World Trade Organization, Ren said.

At the beginning, China’s transformation faced many obstacles, including domestic prejudice and doubts of foreign countries, Ren said.

However, the “China miracle” surprised everyone, Ren wrote.

“It is said that everything happened in the past 20 years could not be planned in any plan,” Ren said.

Focusing on developing productivity, adhering to the common development of public-owned and private economies and integrating market allocation with the government regulation helped make China successful, Ren said.

However, the problems that have emerged after development are no smaller than those that existed before China’s prosperity, Ren said.

It’s imperative to enhance the quality of economic development, eliminate factors that hamper economic growth mode and smash the administrative monopoly so as to further free development of the private economy, Ren said.

The author called for a sound insurance system that can relieve social anxiety and narrow the income gap, as well as stark government reforms.

Unswerving reform is the only way to realize the goal of “establishing a sound social market economic system by 2020,” Ren said.

Changing China’s economic growth mode, promoting transformation of government functions and boosting equality in public services will allow China to shoulder a sea of challenges both now and in the future, Ren wrote.”

via Socialist market economy turning point for China: People’s Daily – Xinhua | English.news.cn.

A fair summary of the past 20 years and a good prognostication of the next twenty.

Related articles

https://chindia-alert.org/prognosis/
China’s Party approved version of history part 3 – “Socialism is the only way to save China” (seeingredinchina.com)
China pledges more support for small, micro-sized firms – Xinhua | English.news.cn (chindia-alert.org)
China’s economic success sets an example to the rest of the world | John Ross (guardian.co.uk)

China’s economic success sets an example to the rest of the world | John Ross (guardian.co.uk)

Posted in Affluence, China alert, Economics, Market economy, Reform, Socialism | Leave a Comment »

Tags: China, communist party of china, Economic growth, economy, Market economy, Socialist market economy, World Trade Organization

06/04/2012

* China’s import tariffs cut praised by WTO

China Daily: “China’s decision to cut import tariffs, against the backdrop of lurking protectionism in “too many” countries, has been hailed by the World Trade Organization.”

At a time when too many governments are reverting to trade restrictive measures, news of China’s market-opening initiative is most welcome,” WTO spokesman Keith Rockwell said in an interview with China Daily in Brussels. Rockwell was speaking after China announced a package of measures cutting import tariffs last week. The measures will see duty reduced on “some energy products, raw materials, consumer goods closely related to peoples lives, and key items that China does not produce”. And Beijing will encourage more purchases from countries and regions that have signed free trade agreements with China. Boosting imports will entail a more open market for a range of goods, Rockwell said. The Ministry of Commerce will announce details of the measures soon.”

via Chinas import tariffs cut praised|Economy|chinadaily.com.cn.

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Posted in China alert, Economics | 1 Comment »

Tags: China, Chindia, Chindiapedia, import tariffs, Tariff, World Trade Organization

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Chindia Alert: You’ll be Living in their World Very Soon

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* China trade surplus with U.S. may be a quarter smaller

* China-backed payment processor to accelerate global expansion

* China worries spur Mexico stock market flows

* China files WTO complaint against U.S. CVDs

* United States to File W.T.O. Case Against China Over Cars

* WTO: China discriminates against foreign card companies

* Socialist market economy turning point for China

* China’s import tariffs cut praised by WTO

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