China recently faced US tariffs on its tires. China quickly turned around and said that its export practices were fair, and that it would probably appeal the decision to the WTO for a reexamination.
China is also being forced to open up its premium content market so that imports are not funneled through a very small number of government controlled agencies before they make their way to consumers. China is also appealing that decision saying that “public morals” are at stake. That will delay Hollywood having access to one of the world’s largest consumer markets. China must feel that Western content is contaminated with too much sex and violence.
Of course, the Chinese effort to keep first-run movies from being broadly distributed around the country encourages the very large counterfeit market that is a significant part of the country’s underground economy. Knock-off DVDs are sold everywhere and in Beijing they are marketed within walking distance of Mao’s tomb.
China has figured out that even if it loses WTO rulings, it can delay them for months and even years, buying time that helps it financially in the import/export markets.
Douglas A. McIntyre
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