China calls new U.S. tariffs 'unacceptable'

[Denarius]

NEW YORK (MarketWatch) -- The Chinese government on Saturday criticized a proposal by the U.S. to set new tariffs on some paper goods, saying the move goes against recent trade talks.

 

'It's unacceptable and China strongly demands the U.S. to reconsider the decision.'

 

â?? China Commerce Ministry spokesman Wang Xinpei

"China strongly demands the United States to reconsider this decision and correct it as soon as possible," China Commerce Ministry spokesman Wang Xinpei said in a statement on a government Web site.

 

In what's seen as a big ramp-up in trade pressure on China, U.S. Commerce Secretary Carlos M. Gutierrez on Friday imposed duties of 10.9% and 20.4% respectively on two Chinese manufacturers of glossy paper.

 

The move, which marked a reversal in policy for the first time in more than 20 years, was made to counteract alleged Chinese government subsidies to exporters and could set the stage for textile, steel and other U.S. industrial firms to request similar protection.

 

Reacting quickly to the move, China officials said the tariffs threaten the interests of Chinese industry.

 

"It's unacceptable and China strongly demands the U.S. to reconsider the decision," Xinpei sad.

China will keep watch over the program and protect its legitimate interests if necessary, he said in press reports.

 

Subsidies enjoyed by Chinese companies put U.S. producers at a disadvantage, said Gutierrez, who emphasized that the sanctions were legal under U.S. trade law.

 

"It is critical that companies compete on a level playing field," Gutierrez told reporters on Friday. "With today's decision we are demonstrating our continued commitment to create an environment of true competition for American manufacturers, for workers and farmers."

The department's decision is a reversal of a policy of not applying U.S. countervailing duty law to non-market economy countries.

 

"The China of today is not the China of years ago," Gutierrez said. He added that the U.S. would negotiate with China about the subsidies.

The Commerce Department must make a final ruling in the subsidy case before the middle of October. The duties could be adjusted or withdrawn in that ruling.

 

The dollar changed course and fell against the yen and other currencies after the announcement.

 

Stocks also turned sharply lower after the announcement but the Dow Jones Industrial Average recovered in the last hour of trading to close up five points.

 

Gutierrez said the decision doesn't signal a "retreat" from economic engagement with China. "As economic partners, we must be above all, fair," he said. He also denied the U.S. was turning toward trade protectionism

[preahko]

ah, I hate to do it, foreshadow my future, but I'm afraid the chinese and their descended ants will rule the roost...

 

it's useless, it's hopeless...us critical thinking motherfuckers a

 

re gonna be tossed by the side of the ricefiled...

 

so go for it.

 

preahko

[Old Hippie]

Fuck these ass clowns, when they start buying as much of our crap as we do of their's fine, until then fuck them! Oh wait, we don't amke anything here anymore...

[cavanami]

Wen still make steel, cars, airplanes and a pile of other items that are made or soon to be made in China.

 

Yes, f'em!!!!!!!!

[Julian2]

Ask them if you can be a new province.

[liquidflux]

The day chinese made airplanes go into service I'll start taking a boat. Oh wait, those are probably made in China too.

[Julian2]

Yeah but remember when we said the same thing about Japanese stuff? (You're probably not old enough.)

They're buying or stealing technology hand over fist so they'll get it right eventually.

[OCgringo]

The chinese people , not the government will make it work,

who runs the financial dealings in most SE asian countries ?

Chinese !

 

We were screwed when we let them play us , and get rules bent to "help" them get going,

 

Then our corporations sold out and got everything made in China , transfering all the know how to them ,

 

we are Doomed !

 

OC

 

PS....and Walmart id Chinas biggest customer !

[Lord Toad]

I do not think we are screwed yet but we will be if we do not tale China very seriously and consider how to deal with them. They will not be bullied but they do have problem with the masses now churning out cheap goods. If they start losing employment big internal problems will quickly start. So now is the time to set the rules. But this process has got to involve the US and the EU as together they can seriously hurt China.

The first move is to get them to revalue their currency: if they will not then more and more tariff barriers need to appear.

It is clear that if we simply let the Chinese get their way then sometime in about 20 years or so time (Maybe sooner) the old West (USA + EU) will end up with virtually no manufacturing facilities and fewer and fewer productive jobs. The old joke about you and I being the only real guys supplying real income will become the reality.

I personally think that if the Old West is to survive with its current standard of living then protectionism is almost inevitable. I know that goes against conventional thinking but that thinking did not factor in a billion people making all we want at about 5% of our own wage costs.

 

[cavanami]

China has large duties on many items going into China.

 

Way past time that the EU and USA does the same!!!