Trade barriers remain a serious issue in the economic relationships between the United States and China. Top U.S. officials keep blaming China for imposing unreasonable limitations on the American companies that seek market expansion opportunities. Palmer (2010) writes that the United States is concerned about Chinese policies that favor Chinese companies at the expense of their American competitors. However, from the standpoint of China, these measures are totally justified. They secure national and local firms from the risks of market discrimination, while creating favorable conditions for the development of national enterprises. From the Chinese government’s standpoint, imposing trade barriers on the U.S. is quite logical, if China wants to protect its markets from international competitors. Most probably, it is due to effective trade policies and wisely instituted barriers that China has become a leader of the global trade.
It is no secret that, nowadays, China drives the global economy. However, I do not agree with the argument that, if trade barriers are reduced, China will face an economic downturn that will affect the global economy. On the contrary, and according to Wei (2013), “reducing non-tariff trade barriers may increase China’s output by 2 to 3 percent.” Even in the best economic conditions, China cannot provide its economy with all resources, goods, and services required for its smooth functioning and growth. By easing access to its markets from the outside, China can focus on the most important areas of its economy, while international companies will supply Chinese customers with the goods and services that are not available from domestic firms. Certainly, the best China can do is develop a balanced approach that will set effective limitations on the protected industries, while giving U.S. businesses enough opportunities to enter Chinese markets. This balanced approach will foster continuous growth of the Chinese economy, which will benefit everyone at a global scale.
- Palmer, D. (2010). China trade barriers a serious concern – U.S. aides. Reuters. Retrieved from http://in.reuters.com/
- Wei, H. (2013). Ending non-tariff barriers ‘can lift global trade and growth’. China Daily. Retrieved from http://usa.chinadaily.com.cn