US-China territorial dispute escalates into trade war

US-China territorial dispute escalates into trade war. July. 15, 2016 07:01. by 조은아, 워싱턴=이승헌 기자achim@donga.com,특파원ddr@donga.com.

The friction between the U.S. and China over their territorial dispute in the South China Sea is showing signs of escalating into “trade war.” Concern over the dawn of a “protectionist cold-war era” is being raised as the world’s two largest economies are engaging in trade war, with a number of countries around the world getting into a war over exchange rates and patents.

On Wednesday (local time), the U.S. government filed a complaint with the World Trade Organization, accusing China of levying tariffs on raw materials unfairly. The U.S. Trade Representative issued a statement on Wednesday that the 5 percent to 20 percent tariffs imposed on nine raw materials including copper and lead when they are exported from China to the U.S. should have been removed when China joined the WTO in 2001, but the country is still keeping them. This is the 13th complaint the Obama administration has filed against China with the WTO. 　

China's Commerce Ministry responded with a statement on Wednesday that China has consistently complied with the WTO rules, and the nation expresses its regrets that the U.S. has filed such a request.

In addition to the G2 countries, major economies around the world are also getting into a war over exchange rates and patents, adding further momentum to the global protectionist trend. “The order of global commerce centered around the U.S. is teetering since the downturn of the U.S. economy and the Brexit, and the U.S. is policing other countries to maintain the order,” said Seo Jin-gyo, senior researcher at Korea Institute for International Economic Policy. “Protectionism will further grow stronger around the world.”