The Ministry of Commerce has launched anti-dumping and anti-subsidy investigations, according to World Trade Organization rules and Chinese laws, into some auto and chicken products imported from the US which can be seen as a reasonable countermeasure against the recent US protectionist move against China-made tires. On Sept 11, US President Barack Obama signed a resolution on a months-long dispute between the two countries, imposing a whopping 35 percent additional import duty on China-made tires for one year. It will be followed by tariffs of 30 percent and 25 percent in the next two years. The White House says the move is aimed at protecting the US´ domestic tire market.

As a growing economy with ever-expanding ties with the rest of the world, China has to include retaliatory measures in its action against trade protectionism. A restrained and measured retaliation sometimes works well to contain protectionist tendencies among trade partners. If exercised properly, it can help create a more stable trade environment across the world. Because of its traditional and cultural elements, China has long advocated negotiations to settle its trade disputes with other countries amicably. China´s "negotiation-first" diplomacy has prevented it from adopting countermeasures to resolve disputes with other countries, even though it has fallen victim to protectionism many a time.

China, nevertheless, has to do more to make people in its trade-partner countries realize the bigger risks their governments´ protectionist measures could bring about. China needs to take potent countermeasures because they could weaken protectionist forces in such countries. China´s reasonable countermeasures against the Republic of Korea (ROK) over the once-thorny garlic and onion trade dispute helped the two countries agree to strike a fair deal. Shortly after the ROK banned garlic and onion imports from China, Beijing announced a list of Seoul´s products that would be denied access to the Chinese market. That resulted in an immediate compromise between the two countries.

A series of protectionist moves by the US, from virtually banning Chinese tire imports to investigations into China´s steel products and steps against its textile products, show why it is important for Beijing to take some countermeasures. Compared with the US´ protectionist moves, which were uncalled for and even opposed by the American tire industry association, China has enough evidence to support its investigations into US auto and chicken products. For one, the US government subsidizes these products.

“China textile industry companies have pay closer attention to corporate social responsibility and standardize export subsidy policies.” Said Mr. Sun Ruizhe, vice president of China National Textile and Apparel Council(CNTAC).

China textile industry has always been a focal point of international trade protection and must keep alert of various situations. The successful initiation of China Textile Industry Corporate Social Responsibility Management System namely CSC9000T requires that all textile industry companies must discipline themselves which is the first and foremost thing. No offshore criticize voice to China textile industry responsibility has been heard ever after.

Almost all countries around the globe are taking certain trade protection measures to protect domestic industries from imported goods. As the most conventional export-oriented industry, China textile industry is destined to be the most severely impacted one. Two types of fabrics are affected by this “China-made tire incident”: automobile tire cloth and high strength chemical fiber filament. Although the overall tire quantity being restricted is limited, no one could ever ignore the repercussions that automobile tire cloth and high strength chemical fiber research and development has undertaken. Especially for two types of fabric that China has just started to develop. To top it off, EU, Korea and Turkey are also investigating on China’s exported goods. According to an incomplete research report of WTO, over 30 items of China’s exported textile goods are being investigated to avoid trade dumping involving an array of products: chemical fiber filament, staple, curtain, weaving band, automobile tire cord, sheet, linen, to name a few.

In light of the current situation, China National Textile and Apparel Council (CNTAC) recommended that:

More attention should be shifted to hi-tech products and products with more added value.

Self-owned brands must be nurtured and developed.

Timely and promptly get to know the latest textile and apparel standards and regulations of import countries. Develop new products bypassing their technology barricade. Appropriately adjust import countries: Burgeoning markets such as India, UAE, Australia, Brazil would be preferential choices and countries with higher capital turnover rates such as Korea, Malaysia, Russia would also be favorable choices.