Forbidden City

China’s protectionism paranoia is justified

  • Published 05 Mar 2009

China fears an upsurge of protectionism and has plunged itself into diplomatic efforts to avoid it. But a wave of protectionist measures by its own provincial governments is undercutting its argument.

China has more to lose from protectionism than any other major economy because it runs surpluses with virtually everywhere. If overseas markets start to shutter up, or more trade partners follow Washington’s “buy America” example, Beijing’s export sector will be hard hit. If tens of millions more migrant workers lose their jobs, in addition to the 20m officially estimated to have been laid off in recent months, then social unrest could escalate.

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