Chinese firms need rules to flourish abroad

By Ding Gang Source:Global Times Published: 2013-2-20 19:03:01

Thailand's seafood exports to the US are probably in for more trouble.

Recently, the US urged Thailand's fishery administration to expel illegal workers, especially children illegally recruited from Myanmar and Cambodia. This might mean that Washington will impose certain trade restriction measures on Thailand.

In recent years, trade conflicts between the US and ASEAN countries have appeared mainly in two fields - market entry and labor standards.

The causes behind these troubles are Washington's endeavors to set up trade norms in this area.

The Trans-Pacific Partnership that the US is actively boosting is superficially aimed at the establishment of a free trade area. But essentially, the US is trying to dominate the trade system in this region through norms set up by Washington.

Experts usually interpret the US "pivot" to the Asia-Pacific region, proposed by the Obama administration, as a US effort to maintain its dominance and balance China's rise through shaping the regional security structure.

Nevertheless, considerations of shaping the future trade structure in the area are equally important in Washington's "pivot" strategy.

Since last year, economic considerations in the US "pivot" to Asia-Pacific strategy have become increasingly evident. Investments by US enterprises in ASEAN countries are expanding, and bilateral trade is growing.

It's especially worth noting that as Washington has partly lifted sanctions against Myanmar, some US financial, energy and beverage companies are now able to enter this country which has such great potential for economic growth.

In the course of its military and security intervention in this region, Washington seeks to reshape regional rules while increasing its own input. The mentality is the same when it comes to economic exchanges and trade.

The essence of a free trade area lies in having rules. What Washington urgently needs is a system of trade rules that can balance and even guide ASEAN Plus Three.

Generally speaking, Washington's proactive promotion of standardizing its economic and trade ties with Asia-Pacific countries facilitates regional economic and trade development.

And creating a standard trade system in this region, which leads the world in terms of economic vigor, is pivotal to reshaping the global political and economic geometry.

Compared with the US, China seems to be putting more emphasis on practical interests while developing its trade and economic ties with countries in this region, but lacks preparation in its trade rules, especially comprehensive designing of new rules in trade.

One prominent example can be seen from Chinese companies' pace in going abroad being hindered due to a lack of rules. Many troubles that Chinese firms have encountered in Southeast Asia in recent years are linked to the lack of restrictions from a set of rules.

Amid the establishment of either a trade system or a security pattern, it's not strength that can decide everything. A good security pattern in which everybody can share peace cannot be built through a race for power or war. 

Similarly, a system with universal trade rules cannot be created simply through lifting economic strength.

Future trade systems can only be shaped through multilateral cooperation, not independent efforts by the US. In the Asia-Pacific region, the actual development levels of developing countries such as China and Thailand must be taken into consideration.

Some basic rules that are widely accepted and in accordance with international common practice should also be included. For instance, more attention needs to be paid to labor and environmental protection.

While going global, Chinese companies need to take along not only capital, technology and talent, but also rules. It is in this way that Chinese companies can put down deep roots abroad.

The author is a senior editor with People's Daily. He's now stationed in Bangkok. dinggang@globaltimes.com.cn



Posted in: Columnists, Viewpoint

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