Trade friction refers to conflicts and disputes arising from conflicts of interest between countries or regions in trade activities, typically manifested in forms such as tariff barriers, anti-dumping, countervailing measures, technical barriers to trade, intellectual property disputes, and import quota restrictions. It is commonly encountered in bilateral or multilateral trade negotiations, WTO dispute settlement, and situations where enterprises face export obstacles. Note: Trade friction may escalate into a trade war, with broad impact and long duration. Enterprises should monitor policy developments, pay attention to force majeure and dispute resolution clauses in contracts, and diversify their markets in advance. Unlike 'trade barriers,' trade friction emphasizes the process of conflict and interactive relations, while trade barriers focus on specific restrictive measures. Compared with a 'trade war,' trade friction is less severe but may evolve into a trade war. Foreign trade practitioners should distinguish its stages and nature in order to adopt compliance responses or government negotiation strategies.
📝 Examples
1. Recently, trade friction has arisen between China and the EU over photovoltaic products. Our enterprises are actively communicating with the European side through industry associations, seeking to resolve the dispute through price undertakings. (Note: In the context of an anti-dumping investigation, enterprises respond to trade friction through industry consultation.)
2. Due to ongoing China-US trade friction, many exporters have begun shifting part of their orders to Southeast Asia for production to avoid the risk of additional tariffs. (Note: Enterprises adjust their supply chain layout to cope with the rise in tariff costs caused by trade friction.)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
Trade practices may vary slightly by country; pay attention when using them
When using terms in contracts, specify the applicable version (e.g., Incoterms 2020)
For unfamiliar terms, use GlobalSync's multilingual email helper to confirm with your partner