China may face protectionism
Cheap Chinese exports stemming from the Chinese government’s stimulus measures may face a global retaliation next year as supply outstrips demand, according to a recently released report by the European Chamber of Commerce in China.
The report warns that the blind expansion of industries such as steel, cement and plastics will exacerbate manufacturing overcapacity and could lead to a protectionist backlash.
“By the second half of 2010, there will be far more dumping cases against China for unfair trading, We are really concerned about protectionism,” said Joerg Wuttke, chamber president.
Recent cases of protectionism include the USA’s decision to impose duties on Chinese tyres and steel pipes as a response to dumping.