As reported by the China Daily in Beijing, certain US politicians visiting China yesterday (Aug 29th), allegedly indicated of the dangers of trade protectionism against China in the U.S. Congress and would like to intensify mutual cooperation to prevent it. Following quality issues regarding pet food and lead paint in toys, it would appear that “Some individual politicians are exploiting this opportunity, trying to go for protectionism for other reasons” and prompted the US Congress to pass a number of bills to limit, or strengthen inspections on the import of Chinese products.

Whether it is media hype or trade protectionism, Chinese products have enjoyed higher ratings than those sourced in other countries and only recently has quality become a hot topic, leading many to feel that Chinese products are being targeted by certain groups in the US Congress. In talks with the delegation [of US Politicians] China’s top quality official, Mr. Li Changjiang, minister of the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) was quoted as saying “There’s growing trade protectionism in the US Congress against China, and it’s becoming obvious…I really worry that such protectionism could harm us both.”

Li further noted that he was glad to notice that over 1,000 US economists from all 50 states and major universities had realized the harm from such [trade] protectionism and had earlier this month signed a petition opposing protectionist policies against China. Read the petition below.PETITION - Concerning Protectionist Policies Against China We, the undersigned, have serious concerns about the recent protectionist sentiments coming from Congress, especially with regards to China. By the end of this year, China will most likely be the United States’ second largest trading partner. Over the past six years, total trade between the two countries has soared, growing from $116 billion in 2000 to almost $343 billion in 2006. That’s an average growth rate of almost 20% a year.This marvelous growth has led to more affordable goods, higher productivity, strong job growth, and a higher standard of living for both countries. These economic benefits were made possible in large part because both China and the United States embraced freer trade.As economists, we understand the vital and beneficial role that free trade plays in the world economy. Conversely, we believe that barriers to free trade destroy wealth and benefit no one in the long run. Because of these fundamental economic principles, we sign this letter to advise Congress against imposing retaliatory trade measures against China.There is no foundation in economics that supports punitive tariffs. China currently supplies American consumers with inexpensive goods and low-interest rate loans. Retaliatory tariffs on China are tantamount to taxing ourselves as a punishment. Worse, such a move will likely encourage China to impose its own tariffs, increasing the possibility of a futile and harmful trade war. American consumers and businesses would pay the price for this senseless war through higher prices, worse jobs, and reduced economic growth.We urge Congress to discard any plans for increased protectionism, and instead urge lawmakers to work towards fostering stronger global economic ties through free trade.

To intensify trade talks China will be sending a delegation to the United States early next month for a third meeting on food safety and a second meeting on the safety of consumer products. The two countries will also hold a vice-ministerial meeting on food and feed safety next month in Beijing.