Xinhua/Zou Duowei Beijing, March 31 Global economic and trade frictions have faced a grim situation in the past year, according to the Global Economic and Trade Friction Index 2020 released on Wednesday. Among them, due to the influence of the epidemic combined with the Sino-US economic and trade frictions, the import and export restrictions reflect the trend of intensifying conflicts, and relevant enterprises should pay attention to avoid risks in international trade.
The report, released by the Legal Advisory Committee on Economic and Trade Frictions of the China Council for the Promotion of International Trade (CCPIT), selected 20 countries and regions including the United States, the European Union, China, Japan and the United Kingdom as samples for quantitative index calculation and qualitative analysis.
The report shows that in 2020, the global economic and trade friction index will fluctuate on the whole. The friction indexes of countries and regions such as India, the United States, the United Kingdom and the European Union are mostly high, indicating that the competition among major countries is intensifying, while the economic and trade frictions among other countries are relatively flat.
Zhang Yuejiao, director of CCPIT Legal Advisory Committee on Economic and Trade Friction and professor of Tsinghua University Law School, believes that the COVID-19 epidemic has led to the world economic recession and impacted the global supply chain and industrial chain. “According to the historical law, the economic depression is the main reason for the rise of trade protectionism.”
The Global Trade Friction Index reports the use of five categories of trade measures, including import and export tariff measures, trade remedy measures, technical trade measures, import and export restrictions and other restrictive measures. A total of 3,497 measures were issued by 20 countries and regions in 2020, an average of 291.4 measures per month, according to the data.
Among them, technical trade measures, accounting for 46.8% of the total measures, are the most frequently issued measures because of their more “hidden”, “difficult to supervise” and “difficult to predict”. Trade remedy measures and import and export tariff measures become the main developed countries and regions and developing countries respectively more commonly used measures.
In terms of national distribution, the United States took the lead with 624 measures, accounting for 17.8%, followed by Brazil and the European Union with 510 and 466 measures respectively.
Zhang Yuejiao said that after analyzing the report, China’s economy and trade will face a complex and severe external environment in the coming period of time. Chinese enterprises have become the focus of export control and economic sanctions enforcement by major countries, and how to effectively avoid risks should become a key consideration for many high-tech enterprises to formulate strategies.
On December 18, 2020, the Global Economic and Trade Friction Index was officially released to the public. In order to monitor the latest trend of global economic and trade frictions in a timely manner, the Global Economic and Trade Friction Index is released on a monthly basis.