Oppose Trade Protectionism,Maintain healthy Development of Sweden-China Trade Relation.
By Qiu Deya
Economic and Commercial Counsellor, China Embassy
Amid the turmoil of financial crisis, the noise of trade protectionism is getting stronger. As two countries that advocate trade liberalization, Sweden and China have enjoyed a good economic and trade relation in the past years. I believe that there are more to cooperate for the two countries in curbing trade protectionism.
In May, 1950, Sweden became the first country in western world that established diplomatic relation with China. Since then, China and Sweden have maintained a good economic and trade ties. In July, 2006, His majesty, the King and the Queen of Sweden visited China, a welcoming ceremony in a great scale held in Guangzhou. In June 2007, H.E. the president of People’s Republic of China, Mr. Hu Jintao, led a state visit to Sweden, which is the first visit by Chinese president ever. There have been frequent visit-exchanges at ministerial level each year.
Sweden and China share common views in many aspects with regards to global trading system. Both countries oppose trade protectionism and advocate trade liberalization. Both sides regard that an open, fair, rule-based and stable multilateral trading system under the WTO is important for achieving economic growth and development. Both sides concern over the current situation of the Doha Round negotiations and agreed to push for a successful comprehensive and ambitious conclusion of the negotiations.
These frequent high level visit-exchanges plus those common views on global trading system have created good conditions for economic cooperation between the two countries.
In 2008, the bilateral trade between China and Sweden amounted to around 10 billion USD, with an almost equivalent amount of export to Sweden and import from Sweden. At present, China is the first largest trade partners of Sweden in Asia, while Sweden is the 9th trade partners in EU countries. Up to the end of 2008, Swedish companies have invested 969 projects in China. Swedish major companies such as Ericsson, Volvo, Electrolux, SKF, Atlas Copco, ABB, IKEA have established their operations in China. While nearly 60 Chinese projects established in Sweden according to Swedish ISA statistics. The famous Chinese telecom companies such as Huawei, and ZTE have set up research institutes in Kista, Stockholm. The pilot project for bio-energy project to be invested by China Power Grid Corporation is being undertaken. Meanwhile, the bilateral technological cooperation developed also very quickly. In 2008, China and Sweden have signed 81 contracts with regards to technology transfer, with contractual value ranking the fourth in EU.
At present, the impact of world financial Crisis on real economy is spreading and penetrating. With the downturn of global economy, contraction of world market, trade protectionism is coming back and the number of trade friction cases is increasing. History shows that the worsening of economic environment often lead to protectionism, while trade remedy measures and trade limitation measures are the main tools for protecting domestic industry. As the third largest trading nation and second largest exporter, China shows special concerns over trade protectionism and trade friction thus caused.
The Chinese government firmly opposes trade protectionism. The essence of trade protectionism is the state intervention in trade practice, the containment of competition from foreign goods, services and productive factors. China regards protectionism as a conduct that has no gains but every harm to others and is a hindrance to the recovery and growth of the world economy and that trade protectionist measures have seriously destabilized international trade. As a responsible member of the WTO, China maintains trade liberalization, opposes trade protectionism, and supports proper settlement of trade frictions through international cooperation.
The Chinese government stands ready to work with other countries to properly resolve trade frictions through consultation. We believe that conflicts and frictions alone are not fearful. The key lies in the manner in which such frictions are resolved. Both sides of frictions should conduct communication and consultation in sincerity and openness, and strive to expand the area of common interest, so as to resolve conflict and divergences properly.
The Chinese government encourages the settlement of frictions between businesses through communication and cooperation. We support Chinese companies to respond to trade dispute by following the legal procedure of the importing countries. Meanwhile, we encourage and support Chinese companies to communicate with incumbent industries of the importing countries, in order to remove or reduce trade friction through consultation and cooperation, and thus achieving mutual benefits. Government of relevant countries should, in joint efforts, build a platform for dialogue for business communities of different countries, so as to promote communication and cooperation.
The Chinese government upholds a mutual benefit, win-win and open-up strategy. The sustained growth of the Chinese economy and the constant expansion of the Chinese market not only benefit the Chinese people, but also bring huge business opportunities to the rest of the world. China welcomes businesses from across the world to explore the Chinese market so as to share the fruits of China’s development. China’s development represents opportunities for and contributions to the world instead of posing threats. China is dedicating itself to build a harmonious and orderly international trading environment. China is willing to overcome the present difficulties and to grow together with the rest of the world, on the basis of mutual benefit, especially at this difficult moment of financial crisis.
