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China trade association protests int'l protectionism

(Xinhua)
Updated: 2009-03-21 22:26

BEIJING -- One of China's national trade associations on Saturday issued an open letter to protest rising international trade protectionism.

The letter, entitled "Resist protectionism and implement responsible global business practices," was issued by the China Mergers and Acquisitions Association, a non-governmental organization run by the All-China Federation of Industry and Commerce.

"The financial crisis is spreading across various industries in different countries. Protectionism only makes the situation worse," the letter said.

It called on chambers of commerce and multinational corporations in all countries to help rebuild confidence in the journey of globalization and common goal of economic development.

"Globalization provides an easier environment for cross-border investment and reduces regulatory barriers to trade," it said.

Fei Guoping, deputy director of the association, said that since the financial crisis broke out world-wide, a sharp drop in demand has been seen globally.

He said the letter was supposed to be a warning for the countries that are taking the risk to adopt a series of protective actions to let more opportunities flow to local businesses and citizens.

"Such actions are short-sighted ... these measures may cause a domino effect within governments, multinational corporations and a variety of international and domestic organizations and consumers, " the letter said.

A report made by China's top government think tank, the Development Research Center of the State Council, earlier this month said China is likely to become the main target of rising trade protectionism amid the global economic crisis.

It said with the US introducing the "Buy America" clause in its stimulus package, protectionism is set to rise globally.

A World Bank study released Tuesday showed 17 of the G20 nations had implemented trade-restricting measures since last November.

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