Japan’s Experience and Lessons Dealing with Trade Frictions and Lessons for China

　　Abstract: As Japan became the World’s second largest economy in the 1970s, it saw trade frictions with the United States increase rapidly. Under the GATT, trade frictions between the two countries were generally resolved by anti-dumping suits filed by the United States and through bilateral negotiations between the two governments. Under the WTO, Japan shifted to use the WTO’s multi-lateral dispute resolution mechanisms to resolve disputes with a good deal of success. In specific cases of trade frictions, Japan crafted a three tiered coordination mechanism which involved government, industry and scholars (track two). This functioned to effectively inhibit the US from engaging in unilateral trade protectionism. At present, China faces an international trade environment similar to that faced by Japan as it made its economic rise, and as such China can learn much from studying the policy mechanisms that Japan developed in response to trade frictions and disputes.

　　Author: Dai Long is an Associate Professor in the Law School of the China University of Political Sciences and Lawy