US media commentary RE: China is a responsible stakeholder

United States, "Washington Post", the original question: Why China to act as a responsible stakeholder? Earlier this week, China announced on rare earth exports, will act in accordance with the global rules of the game.

In this regard, "Wall Street Journal" explained: China canceled the strategic value of mineral export quotas. This restriction policy a decade ago, has triggered a global trade dispute, prompting some countries to reduce dependence on Chinese supplies ...... British North Quayle Blue Oak analyst Frank Tang (sound), said: "This change may be due to the pressure of the WTO (China against). China said that as a WTO member, China must comply with WTO rules. "

In contrast with the usual view, China is actually like a responsible supporter of global economic rules of the game, as acting, rather than a country founded by the United States is determined to weaken the system. Changes in domestic rules to comply with its international obligations, is China policy coordination to maintain an example of a more open economy. This is a victory for global economic governance, and is easily achieved.

Of course, whether living or global political economy, in fact, is not so simple. Ed Crooks in the "Financial Times" explained that Chinese cooperation for another reason: "The United States Department of Defense, a former adviser believes that China is unlikely to maintain control of the global rare earth market, because countries in improving the efficiency and to find other sources. "

So in other words, China rare earth policy results in 2010, the WTO has made a ruling adverse market reaction is prices, severely weakened China market dominance in the rare earth sector. China WTO ruling suddenly default, it seems not considered concessions. This is consistent with a point I made last year - the most powerful economic strategy is market forces and policy responses at the same time play a role. Russia's economic sanctions is the case, the issue is now on the Chinese rare earth as well.

This is also an example of the role of the system - you can choose as China reacted like Russia, but it opted for a more pro-neoliberal road. Russia, Venezuela and other countries when they are first and foremost export prices fall, trying to challenge this system. The results of these countries, what's happening in China in the eyes. Now Beijing is willing to "subsidies" in some countries, in order to advance their own national interests. But involves the global economy, China attaches great importance to the interests of the global system to get, even more than the system of dissatisfaction. Therefore, China will remain a responsible stakeholder.


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