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From Davos to Bejing: How protectionist measures affect China's coal imports.

 

On 17 January this year, the annual world economic forum kicked off in small town of Davos, Switzerland, comfortably situated between snow laden slopes of the Landwasser Valley. This years event was particularly noteworthy as a smiling President Xi Jinping, the first Chinese President to join the usual gobal business elite at the WEF, launched a robust defence of globalisation and free trade, distancing himself from his newly elected American counterpart in the process.

 

Yet while China’s leaders tout efforts to offer foreign investors a level playing field in China, there are growing concerns that the country is taking an increasingly firm protectionist stance. The service sector being practically off limits, foreign investors looking to set up factories in China are often forced into setting up joint ventures. In addition to the tariffs that are normally associated with commodity imports, the state-run China Securities Times reported on Wednesday that China will not allow coal imports at small ports from 1 July.

 

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