In The News

The World Needs Rebalancing, Not China Alone

Jeffrey E. Garten March 22, 2010
Washington’s uproar surrounding China’s handling of its currency risks becoming more than a trade spat, according to international trade expert Jeffrey E. Garten. If the US labels China a currency manipulator and imposes tariffs on Chinese goods, not only could this action wreck the recovery, as the world economy remains fragile, but it could also boil over into other realms of international...

China Uses Rules on Global Trade to Its Advantage

Keith Bradsher March 16, 2010
China seems to be pursuing a two-pronged strategy to exploit inconsistencies in global governance systems to benefit its economy at the expense of the rest of the world. On the one hand, China is filing an increasing number of cases with the WTO, despite the country's gigantic trade surplus. On the other hand, China is suppressing reports prepared by the IMF that charge it with keeping the...

Beijing Sanctions Over Arms Sales Could Backfire

Jamil Anderlini, Kevin Brown February 4, 2010
China threatened to impose sanctions on US defense companies, including Boeing, following their participation in the Obama Administration’s intended arms sale to Taiwan. But China could be shooting itself in the foot. Boeing enjoys a dominant presence in the Chinese commercial aviation industry. In addition, China’s hopes to develop its own jumbo jet by 2020 depend on continuing technical...

News of Globalization's Death Vastly Exaggerated

John Hancock, Robert Greenhill December 8, 2009
Despite the claims that the economic crisis would lead to increased protectionism and isolation, the opposite has occurred. There are three major reasons why globalization hasn’t suffered a major decline through this most recent crisis. First, international institutions have proved strong and effective: for example, the WTO's “trade courts” effectively settled disputes and the Bretton Woods...

EU Finds Trade Barriers Rising Since Global Crisis

Stephen Castle November 11, 2009
A new report by the EU’s trade commissioner states that many countries have instituted trade restrictions on European exporters amid the global economic crisis. The report expects some countries to maintain these trade restrictions once the crisis is over. Interestingly, there appears to be a link between membership in the World Trade Organization and countries with restrictive trade measures:...

China and US: Tire-d of Fighting

Gady Epstein September 14, 2009
China and the US seem like Siamese twins that hate each other – joined at the hip by trade but pushed apart by issues as diverse as human rights, climate change, and security. The current financial crisis makes some believe focus on trade may take center stage. Gady Epstein from Forbes argues that the decision by President Obama over the influx of cheap Chinese tires reflects the deepening...

Protectionism Threatens Global Economic Recovery

Richard Baldwin and Simon Evenett March 13, 2009
A global economic recession increases the temptation for national governments, as happened in the past, to pursue protectionism, despite its proven record of harming the economy. What makes similar attempts now by governments more insidious is that they are more subtle and thus murkier to detect. As Richard Baldwin and Simon Evenett, editors of a new study note, measures are being taken “that...