China calls for FAIR trade while swiping left on Trade Protectionism

BEIJING, JUNE 17 (Xinhua) — In the Forum for East Asia-Latin America Cooperation (FEALAC), the topic of Trade Protectionism has been brought up. China feels that is a pressing issue, considering that China has contributed greatly to the development of Latin America. 

As such, trade between China and Latin America is set to grow more than double in the next 10 years, to more than $700 billion, adding on to the already significant impact China has had on the region.

China would thus like to assert its stance against trade protectionism. 

With rising trade protectionism, China thus should be considered as a logical replacement to the USA in terms of global trade. 

Some detractors may argue that the USA has a better geographical location for trade as compared to China, debating that China might not be a good alternative to the USA. 

However, this is visibly false. China has a desirable and strategic manufacturing location. 

China is near major supply chain producers such as those in Vietnam, Malaysia and Thailand. China has access to low cost labor countries in Southeast Asia, supporting the China + 1 strategy. 

This would greatly benefit ASEAN countries, and at the same time, tackle the issue of trade protectionism. Together with the noteworthy Belt and Road initiative linking China to central Asia, Europe, Africa and the Middle East, this will help countries to access global markets. 

Lastly, the numbers regarding this argument beg to differ. In 2024, China's global exports reached $3.59 trillion, while the USA reached $2.06 trillion.  

The numbers cannot and will not lie. Naysayers are grievously incorrect; the labour of China’s forefathers that has put the nation on the path to greatness will be rewarded with its destination of economic success.  

Trade protectionism undermines not only the principle of cooperation, but the reality of interdependence that binds us, especially in the Forum for East Asia–Latin America Cooperation (FEALAC). 

For the Latin American region, which relies on open trade to industrialise, protectionism is not a feasible policy but it is a barrier to growth and development. 

As a fellow developing nation in the past, China understands the barriers Latin American countries face. This is why China’s vision for trade is not based on domination, but brotherhood and solidarity. 

China has introduced their FAIR framework, which effectively addresses all issues trade protectionism brings about.  

The solution is simple. The multilateral FAIR framework, which is an acronym for Flexible Tariffs for Developing Countries, Anti Dumping Safeguards, Inclusive Digital Trade and Reciprocal Market Opening. 

Having flexible tariffs for developing countries requires them to have the policy space to implement smart tariffs while pursuing liberalisation gradually and strategically as well as recommends to set their applied tariffs at levels below these bound rates, providing flexibility to adjust tariffs based on their economic condition. 

Additionally, China has proposed a very modern and feasible solution of Anti Dumping 

Safeguards and Inclusive Digital Trade which was favourably looked upon by various other countries in FEALAC. 

These transparent investigations and enforceable remedies are put in place to protect fragile economies, hence encouraging stronger economic ties Latin American countries will have with China. 

China also believes that openness must be mutual. Hence, China encourages balanced and reciprocal agreements, where both sides benefit, not just one, through the Reciprocal Market Opening. 

In the past, China has opened its markets and lifted over 800 million people from poverty, helping to connect Latin America to Asia through Belt and Road infrastructure. China has rescued the region, and wishes to do it again.  

Unlike some powers that weaponise trade for political gain, China offers partnership without conditionality and development without interference.

Bibliography:

Ma Yihan. Statista: “Value of export of goods from China from 2014 to 2024” Jan 22, 2025 https://www.statista.com/statistics/263661/export-of-goods-from-china/ 

World Bank: “The World Bank In China” n.d. 

https://www.worldbank.org/en/country/china/overview 

World Economic Forum: “China’s trade with Latin America is bound to keep growing. Here’s why that matters” June 17 2021 https://www.weforum.org/stories/2021/06/china-trade-latin-america-caribbean/

Written by: Lee Xin Yi, Aarna Wali, Poh Kai Yi Ian