Free Trade

China imposed more trade restrictions in 2009, increasing concern that the country is failing to comply with its obligations as a member of the World Trade Organization, the Office of the U.S. Trade Representative said in an annual report Tuesday.


Intellectual property rights, industrial policies, trading rights and distribution services, agriculture and services were the main areas of concern, it said.

Recently, i read an article regarding the issue of setting up high barriers for the entry of new competitors. As far as I am concerned, China has already been opening up to the world by a mile since the past decade and that is definitely flagrant throughout the past 5 years.


Nonetheless, China is still concerned about its own domestic supplies not being utilised by the citizens. Afterall, as the aphorism mentions, "Utilization is the sincerest form of flattery." If the China citizens were to start capitulating to the temptations from aboard, the domestic market will definitely suffer. This will inevitably damaged the level of recognition of China goods along with the reputation of the country per se. And given China's scale of economy, it will be a devastating damage to their local economy and many will start returning to their poverty cycle.

Government interventions by China is definitely imperative considering that there needs to be a control on the imports of goods at the end of the day. While it may be true that there should not be any limits placed given that it is now an open market, we have to give them some "space to breathe" before they get choked to death by the massive amount of imports.


All in all, to be fair to China, it really has been incredible for the past 5 years, pushing the world economy to a new high and accentuating itself as the world's next top economy in the years to come.

Credits -marketwatch, -destination360, -nicholsoncartoon, -made-in-china