WTO official: China to become the world's biggest exporter is a good thing

Recently, the ASEAN series of summits, according to the signed memorandum, China and the ASEAN countries planned to start free trade zone on January 1, 2010, the WTO (World Trade Organization) chief statisticians Hubertescaith yesterday to talk about the financial crisis after the trade changes, pointed out that　　　　A variety of South-South regional cooperation will emerge, a trade creation that this year would be good if China replaced Germany as the world's biggest exporter. Global trade rally before and after Christmas Hubertescaith said in an interview, in the past 20 years, multinational companies have successfully found the labor force, low resource cost of production in the world is the main driving force for global economic development.　　But the process-the global supply chain-has been hit hard by the world financial crisis that erupted in September 2007. Hubertescaith said that since the crisis, the decline in world trade volume is partly due to the financial crisis caused by the supply chain, but in principle, the effect of inventory. The "inventory effect" means that when terminal consumption declines, each part of the supply chain is no longer restocking because of uncertainty about the economic outlook until its inventory is exhausted. So the end of the supply chain faces a sudden stagnation.　　But when consumption returns to normal, the global supply chain can return to its previous state. Hubertescaith also said global trade, which is entering the first phase of economic recovery because of the inventory effect, will have a strong rebound (since everyone's inventories are depleted), especially around Christmas this year.　　But by the year 2010, everything depends on consumer demand and corporate investment. Trade protection will only exacerbate the financial crisis Hubertescaith told our correspondent that the WTO has criticized protectionism many times since last year because it will exacerbate the financial crisis. The WTO welcomes China and Brazil, Russia, India, Indonesia and South Africa to reduce their trade protectionism, which has also directly stimulated exports of these countries to grow faster than western developed countries. "Even if trade protectionism succeeds, it will be difficult to operate, so far there is no example of how successful protectionism is for a country's economy, especially for small countries that do not have a domestic market." and the governance mechanisms of global trade are playing a role in protecting the weaker players.　　"Hubert said. Unlike the West, which is represented by the United States, hubertescaith that any form of exports is welcome, in contrast to the widening of China's surplus.