Chinese Ministry of Commerce Advice to Exporters: Don’t Swallow the Insults

The following is an article by China News Service news agency (中国新闻社), with a report from Xiamen, Fujian Province. It has been published by numerous Chinese papers and other media since Friday, such as Huanqiu Shibao and China National Radio (CNR).

Main Link: http://www.cnr.cn/gundong/201109/t20110910_508487848.shtml

Links within the following paras were inserted during translation – JR

With the implementation of the Go-Out process (“走出去”进程) gathering pace, the question about how to react to trade frictions has become a problem put in front of Chinese companies. On Friday, a Ministry of Commerce official said that Chinese companies, facing frequent frictions, must not submit themselves to humiliation (不能“忍气吞声” – literally: bearing insult, swallowing ones cries), but react actively by making good use of the rules of the game.

On that day, on a “dealing with trade frictions effectively, promoting the industry’s scientific development” seminar held by the Ministry of Commerce Fair Trade Bureau in Xiamen, participating officials and experts thoroughly analyzed the matter of how companies should react to trade frictions, and went through questions and answers with Chinese entrepreneurs.

Song Heping (宋和平) of the Ministry’s Fair Trade Bureau said the global economy had only recovered slowly in recent years, and the falling demand had led to growing pressures and frictions, and Chinese manufacturing industries, participating in the international division of labor broadly and deeply, couldn’t avoid the frictions and conflicts that arose from the situation.

In reaction, Song Heping said, Chinese companies couldn’t react by submitting themselves to humiliation, but respond actively, mobilize their resources, and in cooperation with business associations, local trade departments, and the Ministry of Commerce react with comprehensive responses.

Pu Lingchen (蒲凌尘), a partner with Zhong Lun Law Firm (中伦律师事务所), pointed out that Chinese companies needed to do their homework, actively learn from Japanese companies, break up the whole into its parts (化整为零) and enter the seas by devious routes (绕道出海, i. e. keeping R&D at home and producing abroad), and consciously move the lowest end of production overseas.

Trade frictions have become a problem Chinese companies must not take lightly, and Xiamen Overseas Chinese Electronic Co., Ltd deputy general manager Li Yong (李永) has deep feelings about this. By living examples from his company’s going-out process, he reminded entrepreneurs present [at the seminar] that Chinese companies had to improve their plans (谋划), make sensible arrangements, and make improved use of the “rules of the games abroad”.

Ministry of Commerce data shows that from China’s accession to the World Trade Organization in 2002, to the year of 2010, China had suffered a total of 692 trade remedy investigations (贸易救济调查), amounting to a total of 38.98 billion US dollars. For sixteen consecutive years, China has been the country which faced most anti-dumping investigations, more than any other country, and it has been the country which faced most anti-subsidies investigations for the past five years.

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Related

» WTO: Chinese Export Restrictions violate Global Rules, July 6, 2011
» Unyielding Principles, January 3, 2011

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3 Responses to “Chinese Ministry of Commerce Advice to Exporters: Don’t Swallow the Insults”

  1. Thats one aspect of the PRCs trade strategy. Here is the other:

    http://online.wsj.com/article/SB10001424053111903352704576540672655350498.html?mod=googlenews_wsj

    There has been a ton written on China’s approach to contract law and shipping hire and it make pretty good reading.

    Contracts: simply a piece of paper you keep in the botton draw.

    Like

  2. Yeah, but think of the potential of every business with China, Kt! 😉 Anyway – if you dine with the right people shit will never, ever happen. (OK – the latter line is what I heard some big-mouthed western biz people say before they learned otherwise. Needless to say, from one day to another, they hated China as much as they “loved” it previously. I never felt sorry for them.)

    the WSJ seems to have made the article subject to subscription, once they found you liked it.
    But it seems to be found in full, elsewhere on the internet.

    Like

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