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But wasn't Mr. Wen really explaining Beijing's own protectionist strategy of undervaluing its currency to increase China's exports?
In an otherwise optimistic article in a recent issue of The Atlantic Monthly, James Fallows, an American writer living in China, pointed out that the United States followed a similar protectionist strategy during the Great Depression.
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He produced a "top to bottom" review of trade policy towards Beijing, designed to mollify irate congressmen without pandering to protectionist instincts.The strategy seems to be working, at least temporarily.
What's your strategy to address the protectionist wave in the U.S., which is your biggest market?
Instead, the dismantlement of the import-substitution strategy came only after the protectionist coalition had become sufficiently weakened.
The Bush administration's disturbing pattern of defensively siding with the most obstructionist party at these international negotiations mirrors its domestic strategy of trying to placate narrow protectionist special interests, be they steel makers, cotton farmers or the textile lobby.
Even if this inward-oriented strategy failed to spur economic growth, protectionist policies became entrenched.
It defines innovation mercantilism as "a strategy that seeks to achieve prosperity by imposing protectionist and trade-distorting policies that tip market scales to expand domestic technology production".
Washington's steel tariffs and its farm bill of 2002 -- two other reckless examples of the administration's bizarre strategy of advancing trade liberalization by placating special-interest protectionists -- have antagonized the rest of the world, while encouraging more calls at home for protectionism.
This discredited neoconservative canard ignores recent history and present reality alike, dismissing the role misguided U.S. interventions have played in fostering the very power vacuums Bush fears while discounting the multitude of strategy alternatives between policing the world, on the one hand, and protectionist isolationism, on the other.
Although the decline of import-substitution industrialization strategies and the rise of neoliberalism have greatly reduced the protectionist aspect of reactive regionalism, the idea of providing a common level of shelter for internal producers does remain in integration projects such as the South American trade bloc Mercosur.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com