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22
OCT
2013

China: Protecting What? Protectioning Who?

by John Gangi
Free Trade, Infant Industries, Protectionism, Quota
5 Comments

wto-bicycle-womanChina has decided to put up barriers to foreign produced television programs.  Protectionism you ask? You be the judge. 

Read the article on what China is planning for their television industry.  Comment on the following questions below:

1-  Do you consider this Chinese protectionism?  If so,  what kind?  Explain. 

2- Why exactly is China implementing such a policy? What is China hoping to get out of this? 

3- Should other countries be upset by this policy move made by China? Explain.

Watch the accompanying video below to help support your answers.

What the article and video don’t mention is that such a policy  will helps support Chinese infant industry, in this case an infant film industry, giving it a needed boost.  What industry you ask?  This industry!  I wonder, is this all part of a grand plan of a single billionaire?  of the government?  or of both?  Is if for bettering China? Protecting China?  or a way for someone to protect their investment? 


  

About the Author
John is teaching DP Economics and MYP Humanities at the New International School of Thailand (NIST) in Bangkok. Prior to NIST John taught at the United Nations International School of Hanoi and the International School of Tanganyika. He has enjoyed teaching Economics for the past 9 years.
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5 Comments
  1. Maximilian Tang October 22, 2013 at 2:41 pm Reply
    1 - Do you consider this Chinese protectionism? If so, what kind? Explain. Yes it is a form of protectionism. Specifically, it is a quota on the satellite broadcasters, banning them from buying the rights to more than one foreign-made program per year. This means that broadcasters are only allowed to buy one foreign-made program per year and hence reduces the number of foreign-shows that will be able to be broadcasted in China. This is a form of protectionism, as it puts a limit on foreign intervention and motivates the domestic Chinese TV industry to become more innovative and original. 2- Why exactly is China implementing such a policy? What is China hoping to get out of this? The Chinese government says that it is aiming to tackle "vulgar" and "excessive" entertainment in Chinese television. Instead, they want the TV channels to broadcast "morality-building programs" during prime times in order to promote the educational value for the Chinese people. Their main hopes are to motivate the domestic Chinese TV industry to become more innovative and original so that in the future, China can become independent from foreign intervention. 3- Should this other countries be upset by such a policy move by China? Explain. Yes, other countries should be upset by this policy move. Since programs like "Chinese Idol" or "China's next talent" are extremely popular among Chinese TV viewers, a quota would limit some o these shows from broadcasting in China, thus reducing their revenue. Furthermore, if China completely bans foreign-made TV shows in the future, these companies would lose a major channel of income.
  2. Hauke October 22, 2013 at 2:41 pm Reply
    I believe this is Chinese protectionism and it is a quota on being only to buy 1 foreign- made program per year. They are putting this quota onto the Television programs to get more domestic TV shows. They hope to spark innovative ideas for their television programs. However it may back fire and TV might become very one sided. Other countries will be upset about this quota from china because they will be loosing revenue from Chinese television companies buying the right for their ideas.
  3. ThugLe October 22, 2013 at 2:42 pm Reply
    1. It is Protectionism in the form of a quota. The Chinese government is restricting the amount of rights to foreign made television programs that Chinese television companies can purchase to one per year. A quota does the same thing as it limits the amount of a certain foreign good that could be imported over a period of time. 2. China's main reason for implementing this quota is to fight against "vulgar" and "excessive" entertainment. However, I think this is to force innovation from Chinese companies to create original Chinese programs rather than relying on foreign entertainment. 3. Other countries should get upset by this decision, in my opinion. Protectionism is often times a hostile maneuver in order to restrict international trading. While it is accepted if the consumption the goods being traded bring negative externalities to society. However, entertainment programs such as American Idols and the Voice don't bring negative externalities. They are merely delivered to provide pure entertainment to the Chinese people.
  4. Trung October 22, 2013 at 2:44 pm Reply
    1. I think this type of protectionism is quota, which puts a fixed number of foreign-made program per year to the Chinese entertainment. Now, China can only have 1 foreign-made program show for each foreign-company. This will surely decrease the amount of people that watches television in China since a lot of people are watching these type of shows instead Chinese television shows. 2. China wants to put such a policy for the Chinese entertainment to push and innovate to create more local television programs rather than foreign- made programs from companies outside of China. This will help the Chinese entertainment to change its goals and help the industry to grow further. 3. Other countries should be upset by such a policy since foreign-made programs are now limited and not broadcasted in China. This will surely fluctuate the demand for such programs since less people are now going to keep watching these programs since it is not available in their country.
  5. Blonde Nguyen October 22, 2013 at 2:47 pm Reply
    1- Do you consider this Chinese protectionism? If so, what kind? Explain. This can be considered a form of quota set by the government on satellite broadcasters, limiting the number of foreign TV shows that can be bought. This overall decreases that supply of foreign TV content in China, allowing supply domestic TV content increase.. 2- Why exactly is China implementing such a policy? What is China hoping to get out of this? It could be like they said that the Chinese government is trying to get rid of vulgar TV shows and implement in more morality beneficial shows, also to try get innovation from the domestic TV shows producers. However, it could just be a form of government protectionism, allowing more domestic TV shows producers to enter the market. 3- Should other countries be upset by such a policy move by China? Explain. Yeah they should because its limiting free trade.

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