When G7 trade representatives convene in Osaka on October 28-29, Chinese “economic coercion” is expected to be high on their agenda. But opposing China’s market-distorting industrial policies could inadvertently encourage other countries to erect their own trade barriers, exacerbating uncertainty and impeding global trade.
JAKARTA – On October 28-29, Japan will host the G7 Trade Ministers’ Meeting in Osaka. The primary focus of the gathering will be improving supply-chain resilience and strengthening export controls on critical minerals and technologies. But China’s “economic coercion,” particularly the widespread disruption caused by its non-transparent and market-distorting industrial policies, is also expected to be high on the agenda.
Since joining the World Trade Organization in 2001, China has repeatedly been accused of providing unfair industrial subsidies, resulting in multiple WTO dispute cases. In 2006, for example, the European Union, the United States, and Canada complained that China was offering export subsidies to its automobile and auto parts industries, primarily through its “export base” programs. The WTO strictly prohibits export subsidies due to their significant trade-distorting effects.
Moreover, in 2010, the US asserted that China was subsidizing its wind-power equipment manufacturers by offering grants to companies that used Chinese-made components. In 2017, the focus shifted to alleged Chinese subsidies to large aluminum producers. And a year later, the WTO vindicated the federal government’s complaint that China was imposing countervailing and anti-dumping duties on broiler products from the US.
JAKARTA – On October 28-29, Japan will host the G7 Trade Ministers’ Meeting in Osaka. The primary focus of the gathering will be improving supply-chain resilience and strengthening export controls on critical minerals and technologies. But China’s “economic coercion,” particularly the widespread disruption caused by its non-transparent and market-distorting industrial policies, is also expected to be high on the agenda.
Since joining the World Trade Organization in 2001, China has repeatedly been accused of providing unfair industrial subsidies, resulting in multiple WTO dispute cases. In 2006, for example, the European Union, the United States, and Canada complained that China was offering export subsidies to its automobile and auto parts industries, primarily through its “export base” programs. The WTO strictly prohibits export subsidies due to their significant trade-distorting effects.
Moreover, in 2010, the US asserted that China was subsidizing its wind-power equipment manufacturers by offering grants to companies that used Chinese-made components. In 2017, the focus shifted to alleged Chinese subsidies to large aluminum producers. And a year later, the WTO vindicated the federal government’s complaint that China was imposing countervailing and anti-dumping duties on broiler products from the US.