Rise of protectionism in China a threat to commodities imports

Reuters ^ | Fri Nov 14, 2014 | Fayen Wong

[TigerLikesRooster]

Rise of protectionism in China a threat to commodities imports

By Fayen Wong

SHANGHAI Fri Nov 14, 2014 1:12pm EST

(Reuters) - As China lobbies world leaders to back its free trade plan at an Asia-Pacific summit this week, businesses are complaining about Beijing's use of non-tariff barriers from customs clearance to quality restrictions to curb raw material imports.

Amid a slowdown in economic growth, the world's top commodities buyer is facing a supply glut that has sent local prices tumbling and miners deep into the red. Inventories of iron ore, coal and cotton are bulging at ports across the country and state granaries are overflowing.

The move comes as Beijing has increased its use of a 6-year-old anti-monopoly law to launch a flurry of investigations targeting foreign companies, including Microsoft and Volkswagen AG (VOWG_p.DE), sparking concerns it is seeking to support domestic firms.

[TigerLikesRooster]

The move comes as Beijing has increased its use of a 6-year-old anti-monopoly law to launch a flurry of investigations targeting foreign companies, including Microsoft and Volkswagen AG (VOWG_p.DE), sparking concerns it is seeking to support domestic firms.

They don't see it coming? Surprised and shocked? Well, the fact of the matter is that they were willfully blind with this possibilities, deep into wishful thinking that China will be always the haven of global business. It is China's mindset that China ought to tower over everybody else in every field by a staggeringly wide margin. They invited foreign business in, and learn business knowhow and new technology. Now it is time to open their own shop and set out to drive out the foreign business they invited in. Chinese state is more than happy to help, using the leverage of powerful political muscle. Tom Friedman, Jim O'Neill, those China cheerleaders, where are they? Care to respond to this development?

[TigerLikesRooster]

P!

[The Working Man]

You are so right.

It has always been the Chinese government and people’s mindset going back thousands of years. Assimilate their enemies and overcome them even if it takes Centuries to do so. And with modern technology that can be reduced to decades.

Unfortunately for them they always overreach in the end and then they pay dearly for it.

[TigerLikesRooster]

Indeed, they are going into the overreaching phase. The trick is to make them fall down before U.S. goes into deep trouble. It probably happens in that order. Lots of Chinese money will flee China to safe havens in the world. U.S. is one of them. U.S. will get cash injection from overseas one last time before it goes into real crisis.