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Schoettli, Urs

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Neue Zürcher Zeitung - Switzerland | 18/07/2011

China distorts global trade

China's state enterprises are buying mining rights all over the world, but the state power and financial might that allow it to do this are distorting international trade, writes the liberal-conservative daily Neue Zürcher Zeitung: "Naturally there are still exclusive clauses in the private sector according to the motto: 'What is good for General Motors is good for the United States' that are detrimental to international free trade. But the way in which China in particular goes about buying raw materials, energy companies and agrarian land with state funding is reminiscent of colonial times. Of course it's understandable that the industrial power China is taking measures to secure its supplies, but we should reflect on what it means for the future of trade when nation-state monopolies are taking more and more vital goods out of the free exchange mechanisms."

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