Some reflections of "China's Trade-off"

Razeen Sally, the author of of "China's Trade-off", he wrote some faults of Chinese government policies and interventions of Chinese market, highlight the extremely huge interventions comes from Chinese government in Chinese market even after China joined into WTO. The examples he used are the price control of Chinese food, energy, financial market and the tariff policy of tombarthite. These are all truth, the huge intervention actually exists in Chinese market, but these policies are not as harmful to China as he said, and in opposite, these policies have protected Chinese companies and its weakly market from developed countries' invade and occupy.

And here I just show some of my points about Chinese tariff policy. We have to admit that, more competition can make the companies have more innovation and competitiveness, and also filtrate the disqualification companies. But that is just a totally economic view about market competition, in the real world, more other factors makes governments can not do the theoretically best method to manage its local market. For example, USA's tariff was the the highest of the world in the 19th century, but the highest tariff didn't make USA's industries's decay, it makes the USA's industry got a perfect good environment to develop, and finally make USA became the most powerful country of the world. I'm not mean that high tariff is always good, the overflow of high tariff is really harmful, just like USA's trade war in 1930, the international trade got 70% recession in that time, and Germany's international trade got 76% recession, the industry production of main capitalism countries all got huge influences. Protection tariff policy can provide a good development environment to local companies at the beginning, and it is not suitable for a country which have a mature industry system. The reason why USA always want to make developing countries to execute low tariff policy is because USA has already have a mature industry system, and it want to use its highly developed industry power to destroy the weakly industry systems of developing countries, so that USA can control the industrial power of these countries which means these countries will not be threatening to its position. Chinese history in the 19th century and the beginning of 20th century has fully explained the danger of a country which do not have its own industry system.

And the censure of China's tariff policy is even absurdity. In 11 Sep 2010, Obama government decide to operate the special protectionist tariff for Chinese tire, and after that 24 other special protectionist tariff plans were in considering in USA's commerce department. These evidences show that USA wants to increase the pressure to China for the exchange rate issue and reduce its pressure which comes the huge USA's national debt comes hold by China. USA's actions make thousands of China's company become bankrupt, most of Chinese people want to start a trade war with USA to punish it, and some generals even suggest to sell out all of USA's national debt to give a lesson to USA commerce department. So the duties of China's actions are all belong to USA, the tombarthite tariff and some others are just to give a sign to USA and Japan, tell them don't start a trade war, that's not a good idea for them.

So I think the censure of China's tariff policy makes no sense, the only way is to make USA stop their injustice actions.