Mark Wu

On Monday, Harvard’s Mark Wu published a paper titled “China Inc.,” highlighting how China’s unique economic structure could easily create tensions with other countries that are a part of the international trade regulator.

On the campaign trail, Donald J. Trump has promised to do quite a few things that are beyond the powers of an American president, like billing Mexico for a border wall. But when it comes to foreign trade, his powers as president would come closer to his expansive ambitions....International trade laws limit the type of help governments can provide to companies, but the role of the Chinese government is particularly opaque, said Mark Wu, a professor of law at Harvard and a former United States trade negotiator in the administration of President George W. Bush. “China’s economy is its own beast, and it has a form that was not envisioned at the time these rules were created 20 years ago,” Mr. Wu said. “W.T.O. rules are not necessarily equipped to address all of the problematic aspects of that China Inc. system as far as American exporters are concerned.”

...This week, Harvard Law School (HLS) will host the decennial academic conference of the World Trade Organization (WTO), bringing together scholars, government officials, legal practitioners, and representatives from around the world to discuss the present challenges facing the WTO and the future of trade. The WTO, which began in 1995, oversees the crafting and implementation of multilateral trade agreements and rules, monitors their compliance, and resolves disputes among 162 countries. The lead organizer of the event, Mark Wu ’96, is an assistant professor at HLS who specializes in international economics and trade law. He spoke with the Gazette about the most pressing issues affecting trade and the WTO, and how he sees the future of trade policy.

...At the very least, the process can be made more transparent. Mark Wu, an assistant professor at Harvard University Law School who led US negotiations on intellectual property for several previous trade agreements, says: “There’s a concern by certain members of the public that their views aren’t being heard by the negotiators, but also a concern that they don’t have the necessary information to make informed choices about the trade-offs that affect American interests.” He suggests that the USA publicly releases more details about its negotiating objectives for each section, similar to the European Union; releases information about proposals under consideration as long as its negotiating partners agree; and provides more details about the economic models they review in their decision making.

The automotive rules of origin in the Trans-Pacific Partnership (TPP) are most likely to hurt auto parts suppliers that are furthest removed from the finished vehicle or producers of materials that are less complex, easily shipped and face low-cost competition from Asia, according to industry, congressional and academic experts...U.S. steel producers are already facing a flood of imports, fueled largely by Chinese overcapacity. In addition, China over the past decade has emerged as a major supplier of auto parts to both the U.S. and Japan, and its share of those markets continues to grow for most products, according to data compiled by Harvard Law School Professor Mark Wu. China is the biggest supplier of brakes and wheels to the U.S. and Japan, and is also the largest supplier of auto body parts, airbags and miscellaneous parts to the Japanese market, the data show.

The Trans-Pacific Partnership (TPP) will be at the center of a jam-packed week of trade action, with the president likely to make a push for congressional approval of the pact during his State of the Union address on Tuesday (Jan. 12) and the International Trade Commission slated to hold a three-day hearing on the agreement starting Wednesday...The latest installment will take place Monday and will examine TPP's impact on the automotive sector, with a focus on the automotive rules of origin. The format will differ from the previous forums in that Levin will testify rather than moderate, and Sen. Sherrod Brown (D-OH) will also participate as a witness. The non-governmental witnesses are Mark Wu, a professor at the Harvard Law School and former intellectual property negotiator at the Office of the U.S. Trade Representative; Josh Nassar of the United Auto Workers; and Bill Hickey, chief executive officer of Lapham-Hickey Steel.

Former New York City mayor Michael Bloomberg is pushing for a trading and clearing center in the United States for the renminbi, the Chinese currency, but experts say there are many hurdles before the American companies can trade and settle payments onshore...“Having a renminbi clearing hub in the U.S. will be more a symbolic, rather than economically significant, victory for China,” said Mark Wu, a law professor focusing on international trade at Harvard University. “Whether renminbi -denominated financial instruments will grow over time depends on the speed with which China undertakes more market-oriented reforms at home, not where clearing hubs for its currency are located globally,” Wu said.

An op-ed by Mark Wu. Many Americans who think free trade can be good for them nevertheless doubt whether the same can be said for the international trade agreements that are actually being written, often in conditions of secrecy. The Trans-Pacific Partnership, an agreement that the US is negotiating with 11 Pacific Rim countries, is a case in point. Beyond the few paragraphs on the White House website, most Americans have little idea what it contains. Even members of Congress have to go to a secure room in the basement to read the latest negotiating text...As a former trade negotiator, I know that so-called trade promotion authority and some degree of secrecy is vital for getting a deal done. But the current level of secrecy may be going too far. Instead of dismissing critics as misguided, the White House should strike a better balance between retaining flexibility for negotiators and keeping the public informed during the process.

American companies are conducting a record amount of business in Chinese yuan, looking to benefit from cost advantages over dollar transactions…"If China in the long run is interested in having the renminbi challenge the dollar as a reserve currency, given the size of the U.S. economy, U.S. firms will have to get on board," said Mark Wu, a former World Bank economist who teaches at Harvard Law School.