World Trade Organization
The World Trade Organization (WTO) reported in September that China was
the primary target of antidumping actions by various countries. Five of
the seven countries that have submitted reports to date, including the
United States, cited China as engaging in some form of dumping. Of the
17 cases reported by the United States, China was the target of more
than half of the cases.
Challenging the US imposition of countervailing duties (CVDs) on its
coated free sheet paper exports, China for the first time launched a WTO
dispute case against the United States in September. Beijing claims that
the CVDs violate WTO rules and has requested consultations with
Washington to resolve the issue. If a resolution is not reached within
60 days, China may request the formation of a WTO dispute settlement
panel to rule on the case.
In its testimony to the US Congress on China's year-five WTO
commitments, the US-China Business Council (USCBC) stated that while
China has generally met most of its obligations to date, lingering and
emerging issues are of concern to US businesses operating in China.
USCBC cited low transparency, barriers to government procurement, and a
growing trend of protectionism as areas that must be addressed.
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Economy
Up 10 places from last year, China ranked 83 in the World Bank's
Doing Business 2008 ease of doing business rankings; China is
also listed as a top 10 reformer. Singapore took the top spot, and the
United States came in third for the second consecutive year. Rounding
out the top five were New Zealand, Hong Kong, and Denmark.
Despite the PRC leadership's desire to reduce income inequality and
build a "harmonious society," China's Gini coefficient, a measure of a
country's overall income inequality, rose to 0.473 in 2004, up from
0.407 in 1993, according to a 2007 Asian Development Bank report. In
addition to the income gap between urban and rural China, uneven income
distribution among urban households is also becoming a significant
source of inequality, the report notes.
The PRC Ministry of Civil Affairs plans to extend the basic living
allowance to another 10 million rural residents. Currently, 20.7 million
rural Chinese residents receive these allowances, which average ¥28
($3.68) per person per month. In rural areas, the average basic cost of
living per capita stands at ¥71.4 ($9.39) per month.
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Politics
As the CBR went to press, the 17th
Chinese Communist Party (CCP) Congress, during which PRC President Hu
Jintao was widely expected to cement his power and solidify his populist
policy agenda, was under way. Although Hu is expected to remain at the
helm for another five years, until the next CCP Congress, speculation on
who his successor will be is rampant. Various reports have focused on a
slate of five candidates, two of whom appear to have emerged as top
contenders: Li Keqiang, Liaoning CCP secretary, and Xi Jinping, the
newly appointed Shanghai CCP chief.
The Standing Committee of the Chinese People's Political Consultative
Conference will meet in late October to review the results of the CCP
Congress and its policy guidance.
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