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HIGHLIGHTS: The WTO mechanism for solving disputes, like a double-edged sword, can be used to protect oneself, but the possibility of becoming the accused and losing a lawsuit cannot be ruled out. We should have such a mental preparation and maintain a normal mindset.
In the face of the new situation, the vast number of enterprises should have a long-range development strategy, as well as an international insight and they should be good at protecting themselves. For example, they should not dramatically increase exports to a certain market in a period of time or substantially reduce the prices of commodities.
Following is the interview with Sun Zhenyu, China's first ambassador to the WTO.
China's Efforts and Achievements Are Evident to All
CORRESPONDENT: As far as I know, various WTO members have highly praised China for its behavior over the past year since it joined this world trade organization. What's your view about this?
SUN ZHENYU: True, in the past year, the Chinese government has paid high attention to and conscientiously honored its promises made during negotiation on WTO membership, revised lots of laws and regulations, further reduced tariffs, drastically cut down quota, license and other non-tariff measures and opened service trade in accordance with its promise. The tremendous efforts China has made and the achievements gained are obvious to all and have won the appreciation of the WTO members in general. In the transitional discussion completed not long ago, the broad masses of the WTO members gave an objective and fair appraisal of the work done by the Chinese side over the past year, both the former WTO Director-General Mike Moore and the current Director-General Supachai Panitchpakdi have indicated that China's behavior in its performance of duties and observance of rules prove it is qualified.
CORRESPONDENT: Just now you mentioned that the WTO conducted transitional discussions on China, but I have heard some members queried certain points in regard to China's implementation of WTO agreements, for instance, they said China was too late in issuing the tariff quota, and its regulations in certain aspects were ambiguous and lacked sufficient transparency, is that true?
SUN: Over the past year, there did exist some problems in the process of China's implementation of agreements, our executive work is not flawless and perfect. It is completely understandable that a new member has some problems, particularly technical ones, in the process of implementing the complicated and extensive WTO obligations. Some old members who have joined the WTO for dozens of years still have many problems today in performing their duties. China had indicated its willingness to listen to the constructive opinions raised by various WTO members during discussions, so as to improve its work in the future. Various domestic departments concerned have, in light of the implementation situation in the past year, worked out effective measures to improve work. For example, they issue quotas on time and increase the transparency in quota distribution. Along with its further understanding of and familiarity with the WTO operational mechanism, China will gradually be able to properly solve some individual problems arising in the process of implementation.
Necessity to Maintain a Normal Mindset in Regard to the Mechanism for Solving Disputes
CORRESPONDENT: Recently, trade disputes between China and some major WTO members have increased, some developed members, in particular, have suddenly taken anti-dumping measures and set up technical trade barriers against China. This has made some people at home feel worried. They query whether frictions would "escalate" as time goes by?
SUN: Currently, China has become the sixth trade power in the world, along with trade development, increase in trade disputes is nothing surprising. Of course, we should notice the other side of the matter, that is, global trade protectionism has reared its head from time to time, spearheading large rising trading countries, for instance, irrational trade restrictive measures are constantly adopted against China, regarding this we should launch struggles on just grounds, to our advantage and with restraint, including the use of the WTO mechanism for solving disputes to safeguard our country's rights. Nevertheless, we do not hope to easily confront other WTO members before a law court. Furthermore, to go to law at the WTO will require many professionals and will increase our human, financial and material burdens.
CORRESPONDENT: Many WTO members have come to the extent of "playing with rules", while we have just begun to "learn rules". Is success a bit too small for us to use the WTO dispute-solving mechanism to protect the rights and interests of the Chinese side?
SUN: The WTO dispute-solving mechanism, like a double-edged sword, can be used to protect ourselves, the possibility of becoming the defendant and losing the lawsuit cannot be ruled out. So we should be mental preparations and keep a normal mindset, particularly under the circumstance wherein we are still not completely familiar with the WTO rules and in the process when our system needs to be further perfected, there exists the possibility that we are prosecuted by other WTO members, and that we finally lose the lawsuit. But one point needs to be made clear here: the WTO dispute-solving mechanism is not an international law court, its arbitration institution is only authorized by various members to conduct independent judgment, its fundamental aim is to spur WTO members to abide by rules and perform their commitments. Therefore, when something adjudicated as not in conformity with WTO rules by the WTO dispute-solving mechanism is not necessarily a very disgraceful matter. But in practice, some developed members know clearly that they would lose the lawsuit, and yet they often make use of the dispute-solving mechanism to contend with their trading rivals in order to win time for adjustment of their domestic policies.
CORRESPONDENT: The dispute-solving mechanism you mentioned above mean engaging in a lawsuit between governments in the WTO. In fact, presently many enterprises have suffered a great deal from foreign anti-dumping measures, then how should these enterprises cope with this?
SUN: I think enterprises confronted with the new situation should have a long-range strategy of development, and international insight and should be good at protecting themselves. For instance, they should not drastically increase exports to a certain market in a period of time and substantially reduce the prices of commodities. They should have the sense of training long-term stable markets and of creating their own brands, they should have self-restraint ability, consciously obey the coordination of the intermediary organization and try their best to avoid becoming the objects of foreign anti-dumping measures. At the same time, once anti-dumping case occurs, they should actively respond to the lawsuit, and must not be afraid of going to the law court. Since the beginning of this year, some enterprises have been very active and enthusiastic in responding to lawsuit and have won cases of anti-dumping measures against China, thus setting a very good example.
(People's Daily December 10, 2002)
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