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China did not have a major role in the trade dispute over safeguard measures by the United States against imported steel. However, when the US decided to withdraw the measures in December after losing the case before the World Trade Organization (WTO), lawyer Wang Xuehua felt it was still a milestone for China as a new member of the trade body.
"We gained a much better understanding of WTO rules and we gained important experience," said Wang, who was one of the lawyers representing the Chinese Government delegation in Geneva in this case.
It is an example for China's growth as a new WTO member, said Wang, 40, also founding partner of the law firm Beijing Huanzhong and Partners.
"It is an important process of learning the rules and learning about how to play by WTO rules, and that's basically what China has been doing during the past two years (since the nation joined the group in late 2001)," he said in an interview with China Daily. "Many Chinese people involved in WTO issues are now more confident, although we still have much to learn and to improve."
A good example of this growing confidence is their attitude towards anti-dumping cases against China.
Wang is an expert on trade law, and his firm served as the legal representative for the first anti-dumping investigation initiated in China. Out of the total 27 such cases initiated in China, Wang's firm has handled 17.
Wang also served as a consultant to defend Chinese enterprises in anti-dumping cases against China.
At the beginning, Wang said, people felt panicked, bewildered and even outraged at any news when an anti-dumping case is raised against China, Wang said.
Many Chinese enterprises complain that the anti-dumping accusations against them are often unfair. The main reason for this is that many countries still do not recognize China as a market-status economy, and they choose product prices of a third country as standard in determining whether Chinese export prices are reasonable.
But as experience grows, Chinese entrepreneurs know they have to face anti-dumping charges and have to handle them.
Wang said that he now just treats the anti-dumping cases as "normal business," and an increasing number of people are taking the same attitude.
"It is just natural that trade disputes involving China increase as China's trade relations with the outside world grow," he said.
China has just won a US anti-dumping case against domestic apple juice. But still, much needs to be done regarding such cases, Wang said.
"People and companies involved in foreign trade should get prepared in advance for potential disputes over dumping," he said.
Wang said the key in anti-dumping issues is how well the parties involved are equipped with knowledge about the product in question. Vital information includes the cost in the original country of the product accused of being dumped, its price in its exporting market, its share in the market it goes to, and whether it has really damaged the industry of the importing country.
Not only should those involved in anti-dumping cases do their homework, but rather all parties involved in foreign trade should study these matters to some extent, if they want to have the advantage in any potential disputes.
"Governments, chambers of commerce, exporters and manu-facturers should all establish their respective monitoring systems, but with different goals and levels and from different perspectives," Wang said.
He said some big companies have already begun doing this, but more should join in the trend.
For the exporting companies, they should follow this information and consciously refrain from engaging in unfair competition, Wang said.
They should also try to diversify their exporting markets.
If a product exporting concentrates too much on a certain area, chances for trade friction grow.
For industries that need to compete with foreign exports on the Chinese market, information from such monitoring practices will help them detect unfair competition from foreign rivals and have evidence readily available if they initiate an anti-dumping investigation, Wang said.
In this regard, Wang said the Chinese side should improve its awareness about the dumping activities of foreign exports.
Chinese farmers are particularly vulnerable in this matter, and many still are not conscious about this point.
Wang said that organizations like villagers' committees should take responsibility in representing farmers who are defending the markets where their products are sold.
The government should guide this process, he said.
Wang suggested that the government should establish a trade remedy fund to help Chinese producers in dealing with trade disputes.
Wang said that China is still short on professionals who are well-versed in WTO rules. "Lots of people know a great deal about the WTO on the macro level, but we need more who are very familiar with the concrete rules," he said.
(China Daily February 18, 2004)
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