'We are repeating history of great depression' – Researcher

25 Feb '09

2 min read

According to statistics from the Fair Trade Bureau under the Ministry of Commerce, other countries in the world initiated 93 anti-dumping investigations against China in 2008, involving an amount of US $6.2 billion, representing an increase of 81 percent and $4.6 billion in value from that over 2007.

"Trade wars would be inevitable, if trade protectionism measures cannot be resolved through normal channels", said Long Guo Qiang, a researcher from the Development Research Center of the State Council. He added by saying, "The Chinese government should study and put forth list of possible trade retaliation measures in advance".

Professor Wang Jia Xiao from the University of Washington in the United States said, "We are repeating the history of the Great Depression. The darkest memory in the history of world trade is the passing of the 'Tariff Act' by the US Congress, after the depression of 1929, by imposing high duties on imported goods”.

He added by saying, “Although 1028 economists signed a letter protesting against the bill, President Hoover still chose to sign, leading to all countries in the world coming out with their own versions of trade protectionist measures, subsequently leading to global trade shrinking by a massive 67 percent”.

The proposal of "Buy American Goods" contained in the stimulation package recently announced by President Obama is seen as a sign of another round of trade protectionism by global economists.

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