China Responds, Confronts Economic Challenges

Responding to recent moves in Washington to aid U.S. farmers and steel makers, China has drawn up a list of potential retaliatory tariffs while condemning the U.S. moves as, "bad news."

Long Yongtu, China's vice minister of foreign trade, called the U.S. actions a blow to members of his government who are pushing for liberalization and said the timing of the U.S. policies could restrict China's steel exports while forcing it to absorb even cheaper U.S. farm exports.

"It's an embarrassment for us and, psychologically, it has had a negative impact," Long told attendees at a recent China Business Summit. Long added the U.S. actions wouldn't stand in the way of the China's opening of wider markets. The country's World Trade Organization commitments to open its markets will dovetail with domestic interests in revitalizing industries, generating jobs and cultivating new managers: "WTO is more important than a set of rules," Long says. "It's a state of mind."

In other action, Gao Weijie, the executive vice president of China Ocean Shipping Company, says Americans are slow to recognize the monumental changes taking place in China's economy.

"We are moving from a centralized model to one purely market-driven," he says. "Naturally, we must enforce our own laws when it comes to easing this transition."

Speaking at the "Monterey Seminar" last May, he observed ocean liner pricing confidentiality wasn't in China's best interest. It was a bold position to take at this forum since America's contrary view was voiced by outgoing Federal Maritime Commissioner, Harold Creel, joined by John Isbell, director of corporate delivery logistics for Nike.

The seminar, sponsored by The National Industrial Transportation League, also featured WORLD TRADE MAGAZINE columnist J. Douglass Coates, who took the middle ground on the issue. He did note, however, that the conflict between China and the rest of the international maritime community was disrupting to the pace of building now underway at China's ports. WORLD TRADE editor, Patrick Burnson, served as panel moderator at the event.

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