"Made in China", the strength to rely on hard to break through

Face to face

-International economic experts, Nanjing University Professor Zhao Shu-dong on how to deal with the new round of trade friction to high-end industry spread

This in-depth report group reporter Liu

In the preceding wrote

Following September the European Commission on China's export of data card product set up trade barriers, long ago, the United States, the Obama administration announced the launch of China's new energy industry 301 investigation.

Unlike Western countries, China trade friction concentrated in traditional industries, low-end manufacturing industry and other fields, this "trade war", China's high-end industry, high-tech value-added industry become is the focus of the "containment".

Trade friction to spread the "high-end", its roots lie? "made in China" when how to break through?, the famous international economic experts, Nanjing University, school of Economics, international economic and Trade Department Professor and doctor tutor of Zhao Shu Dong this in-depth reporting group told reporters: high-end industry is developed the "no-luan," and "preemption high-end, enhance harden strength" is the adjustment of industrial structure, the structure of foreign trade, the only way of enhancing export competitiveness.

【 Case playback 】

Department of Commerce's latest statistics show that September, the United States has been on China launched 7 337 investigation, a survey of 301, only from 1 October to 15 days and a half months, United States Department of Commerce's trade remedies and related cases up to 24, involving solar lamp, LCD monitor, printer cartridges and other products.

16 September, the European Commission once again to the Chinese data card launched anti-subsidy investigation, involving some 41 billion. This case has not only become so far China suffered in connection with the largest amount of trade remedies investigations is of such high-tech electronic products first appeared in China's trade friction.

15 October, the United States trade representative's Office issued a notice that, should the United States Steel Workers Union, the United States officially in accordance with the United States Trade Act section 301 against Chinese Government enacted a series of clean energy policies and measures of investigation. Investigate the allegations in the application: the Chinese Government gives new energy to enhance enterprise high subsidies China wind power, solar energy price advantages, to reduce China clean energy products prices, thus on United States-related industry impact, impact on employment.

【 Causes 】

Western countries to borrow foreign trade dispute settlement domestic issues

Common industry choice, with new trade conflicts for world economic discourse and dominance

Reporter: recently, the Western countries to China trade friction to spread the message of high-end products attracted widespread attention, this phenomenon behind what international background?

Zhao Shu-Dong: despite the current trend of the international financial crisis, the end of the world economic situation stabilises the better, but the crisis to world's major developed economies legacy "scars" far from being recovered. The first three quarters of this year, the United States industrial capacity atrophy jobs, unemployment reached a record high of 9.6%, leading to the direct consequence is that the Obama administration support rate is declining, even to the Democrats in Congress midterm election prospects of cast shadows. It can be said that the Government of the United States.

The European Union, Japan and other economies. Even the industry transition to the stage of developed countries after industrialization, their high-end manufacturing, modern service cannot absorb all of the working population. Due to the rapid rise of emerging developing countries, developed in traditional industries, the increasing loss of comparative advantage, a significant part of the General labor force employment pressure constantly underlined, raises sharp domestic conflicts. In a sluggish domestic industrial upgrading and tuning of high unemployment, developed countries must be domestic conflicts outside of the trade dispute over domestic eyes, including trade disputes directed on their market is the biggest threat of major trading partners. China export more to it, it limits what products in China; Chinese on it threats, it limits what products.

Common industry choice, with new trade conflicts

Reporter: why trade friction are increasingly involved in high-tech products?

Zhao Shu-Dong: the international financial crisis forced the global search for industrial transformation solutions, development of new industries, high-tech industry to become the world's common action.

To new energy industry, for example, not long ago, the United States has accused China of domestic energy industry development subsidies violate WTO rules. In fact, the new energy industry subsidies the most, not Chinese, but the United States. As early as the beginning of the Obama administration took office, we made great efforts to develop new energy package, the financial crisis rescue plan is given in the clean energy industry over $ 5 billion in huge subsidies. Expectations by stimulating the development of new energy industry, creating new economic growth point, and provides a large number of employment opportunities.

Therefore, it is common in the industry, with new trade conflicts. Compared with the traditional industry, high-tech products to higher value-added, more profit, profit space and broader, more developed countries on this relied on. In recent years China's industries to accelerate the pace of transition, export products to high-end upgrades on developed countries to form enormous competitive pressure. Western China "trade war" point to high-end, reflects China's export competitiveness, explains how we transform development, adhere to the industry upgrade path is correct.

Compete for world economic discourse and dominance

Reporter: that is, Chinese high-end products export point to let Western developed countries worry that they lost in the high-end products.

Zhao Shu-Dong: on. Western developed economies was eager for the Chinese high-end product implementation restrictions, there is a deeper reason — that is, the "battle for the world economy discourse and dominance of need".

We often see the United States, the EU and other frequently to exchange rate issues, energy conservation and emission reduction issues, trade rules questions

On other countries to impose trade pressures, as everywhere in the world economy led to success so that rely on the backing of strength. This kind of strength, not only in the aggregate scale, more important is the quality, content and level, is to master the high-end technology, high-end industry's core competitiveness.

Over the years, developed countries have core technology, with its own brand, the leading industry standards, the development of trade rules, in most developing countries ' dependence on foreign trade, industrial added value low, can only reside in the low-end segment, become profitable small "migrant". Out of its own interests, developed countries struggling to maintain this balance, maintain dominance; developing countries eager to change this imbalance, competing for the right of speech. Therefore, in the high-tech fields, monopoly and antitrust, become two major forces in the focus of the competition. At present, Europe and the United States under various pretexts to China's high-end industry launch of the trade friction, set up trade barriers, the purpose is to protect its trade-led status and national enterprise of technology leadership.

【 Prospect 】

High-end industry is developed the "no-luan"

To create a sustainable innovation ability of the world's top companies establish the participation in the International Division, international cooperation, new thinking

Reporter: high-end products frequently encounter barriers to trade, whether this indicates that China's development of high-end industry will suffer the greater resistance?

Zhao Shu-Dong: resistance is a must have. China is already the world's manufacturing powerhouse and trading powers, like long ago South Africa World Cup Stadium, from the contest supplies to the grandstand seating, or even a player's game garment, virtually all "made in China", the developed countries do not seem to mind the idea, because the product is produced, but brands mostly foreign labels, in the industrial chain, developed, brand companies earn high profits, they of course for this trade. And now, the Chinese to get large aircraft projects, to export 4G communications network that you want to output a new energy technologies, which are a threat to the "usual" developed countries "and the core interests, will make each other responsive. But we should see that making a no go back arrow, "450 shirt in exchange for a Boeing 747" era must end, high-end industry is unlikely to be a small number of countries designated "restricted area" or the "no-luan in developed countries." Adjustment of industrial structure, trade structure, improve industrial added value and products international competitiveness, which is the trend, is also the only way. Risk, China is the only difficulties, enhanced health, to protect against risks, manage risk, win itself in the position in the international economy.

To create a sustainable innovation ability of the world's top companies

Reporter: market competition is, after all, to enterprise-oriented competition for enterprises, how to "trade war" especially high-end trade disputes break out?

Zhao Shu-Dong: EU recently on Chinese exports data card product implementation anti-subsidy investigation, mainly for Huawei and ZTE domestic enterprises, because they have already successfully preemption and European markets, particularly in China and for the Nordic countries 4G network construction contracts, domestic enterprises in Europe and the market leading position further.

But it cannot be denied that in China, Huawei, ZTE has independent intellectual property rights of this high-end enterprise also rarely, most export-oriented enterprises or to processing, Assembly and production of low-value-added products. Whether it's high-end industry development, or high-tech exports, needs to have strong enterprises as support. Such enterprises do not have to graft great perfection, but rather should be based on a field, the core technology, continuous innovation, always leading the trend to form constitutes the brand value and irreplaceable core competitiveness. When people mention of an industry or a product, the corporate brand image immediately in front, this is what we usually say globally competitive world-class top companies.

Now, the domestic many enterprises already have such a basis, you also need to actively guide, nurture and temper. Let them in trade disputes in full competition, contact the opponent and understand the world, familiar with the rules for their growth and development is a good thing.

Foster the participation of international division, international cooperation, new thinking

Reporter: to high-end development, a large number of small and medium-sized enterprises which space?

Zhao Shu-Dong: we said industry promotion to high-end, enterprise development to the top level, this is not an easy target. For trade disputes arising from business interest of this reality, many small and medium-sized enterprises should be sensible approach, calm, set up in the international division of labor and cooperation, new thinking.

First of all is to avoid an excessive concentration of the market, you can take the circuitous manner, utilizing the advantages of industry, mining exploration gradient developing-country markets and emerging economies, markets, to establish long-term business relations, partnerships, strengthening of export and at the same time, to deepen technical cooperation projects, by optimizing the market risk aversion trade arrangement. In addition, it should be out of the product, focusing on the industrial chain throughout the upgrade of the detail link, strengthen brand packaging, perfect after-sales service, innovative design ideas, and other measures to improve the product added value. Foreign consumers choose to purchase products, consider the Government's trade policies, but the price of the product itself. In the "trade war" breakthrough, ultimately depends on the product's market competitiveness. At the same time, enterprises also need to have the "courage" of thinking and vision, restricted exports in developed countries, but also welcomed the investment, if the enterprise has sufficient strength to other countries ' direct investment, in-place processing production, but also avoid effective means of trade friction.

【 Solutions resolve 】

High-end trade disputes will persist for a long time

Reporter: high-end trade friction occurring frequently, will make China's foreign trade and exports go?

Zhao Shu-Dong: international trade itself is the international economic imbalances, national resource endowment, prices of materials, labor costs, industrial structure, the uneven state of national industrial complementation, resource optimization, making trade reciprocity to both sides. But by the

To trade also affects a State interest of the different sectors, will cause the internal contradictions of the participating countries, taking into account the geopolitical factors, therefore, in the local scope, time, trade disputes, trade friction is a normal phenomenon, as long as there is trade, trade disputes existed.

High-end trade disputes, will be also. One of the key issues, is China's foreign trade in products and technology can improve the structure and hierarchy? trading interests growth is the main sources of growth or quality and structure of upgrade? I think, from another angle, since recent high-end trade friction release a positive signal, at least is "made in China" to change the image, moving towards the low end of the international high-end market starting signs.