More WTO Collaboration Needed to Keep Medical Goods Flowing, Chinese WTO Ambassador Says

World Trade Organization members should do more to prevent export restrictions on medical goods and keep medical and food supply chains open, said Zhang Xiangchen, China’s ambassador to the WTO. Zhang also called on more cooperation between WTO members to combat the pandemic, which he said hasn’t materialized and has helped cripple the WTO. “The reason behind the poor performance [of the WTO] is not only due to the nature and the scale of the crisis,” Zhang said during a May 12 webinar hosted by the Asia Society, “but also the lack of leadership and the diminishing trust among members.”

While Zhang said China and U.S. can do more to collaborate, he also said other members can work together to ensure medical goods keep flowing. Zhang said export restrictions on medical goods are “unnecessary disruptions in the supply chain.” He encouraged more cooperation between the U.S. and China, calling them “major producers and suppliers” of medical goods. “Strengthening collaboration during the crisis and preventing trade policy from being fragmented through multilateral consultation is something we should think about,” Zhang said.

Zhang’s comments came after U.S. Sen. Josh Hawley, R-Mo., said he will introduce a resolution to withdraw the U.S. from the WTO (see 2005080011). Zhang called for more cooperation at the WTO, saying it has a “responsibility” to “deal with the pandemic and respond to the challenge.” But Zhang acknowledged that many members may not be placing an emphasis on WTO coordination as they’re preoccupied with managing the pandemic response. “With the extreme pressure of the crisis, it is understandable that the WTO is not their top priority,” said Zhang, who was speaking from Geneva. “I sincerely hope our work here at the WTO will get back to normal as soon as possible.”

He also said he is unsure how supply chains will change after the pandemic, but urged countries against trying to bring their supply chains closer to home. In a May 11 New York Times opinion piece, U.S. Trade Representative Robert Lighthizer argued against offshoring of supply chains and said the pandemic has “revealed our over-reliance on other countries as sources of critical medicines, medical devices and personal protective equipment.” Hawley has also said the U.S. should do more to stop China from overtaking supply chains (see 2003300039).

Zhang argued against that strategy, saying it will hurt the global economy. “I don't think even for the big countries, such as China and the United States, you can move all the [medical supply chains] back home,” he said. “It’s not possible. It's not efficient. We have to be realistic.