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China and US in new trade dispute


SpiceMan

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China has launched an "anti-dumping and anti-subsidy" probe into imports of some US car products and chicken meat.

 

The Commerce Ministry said there were concerns the US imports had "dealt a blow to domestic industries".

 

It comes a day after the US imposed tariffs on Chinese tyre imports in order "to remedy a market disruption caused by a surge in tyre imports".

 

The case is the latest in a series of recent trade disputes between China and the US.

 

"In line with national laws and World Trade Organisation rules, the commerce ministry has started an anti-dumping and anti-subsidy examination of some imported US car products and chicken meat," the Chinese authorities said in a statement.

 

China has called the tyre move by US President Barack Obama "protectionist".

 

The White House announced duties of an additional 35% on Chinese-made tyres for one year, followed by tariffs of 30% and 25% in the following two years.

 

While Washington has long accused China of trade protectionism, the US is also unhappy at the high volume of Chinese exports to America, accusing Beijing of deliberately keeping the yuan undervalued to make its exports artificially cheap.

 

The US trade deficit with China totalled $103bn (£63bn) in the first half of 2009, down 13% from the same period last year.

 

http://news.bbc.co.uk/1/hi/business/8253365.stm

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In view of China creating unfair market conditions by keeping the yuan artificially low, the US reaction is entirely justified.

 

What is going to be interesting, is Barney Franks reaction to the China statement.

 

Barney, has been waiting, a long time, to take on China over the Yuan.

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Not me...had too many flat tires!

 

Used (maybe still do) had tires made in Japan.

I would take a Japanese made tire over a Chinese made tire any day!!!

 

I would think that Goodyear is still made in the USA, Bridgestone? Goodrich?

...and yes, I am too lazy to google and find out....my bad.

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Typical of the times we live in, virtually every supposedly US company you mention has operations in China, manufacturing the cheap tier 3 replacement tires that are the focus of the dispute. At this point almost no tier 3 tires are manufactured in the US as the capability was shipped overseas 20 years ago and the Chinese imports are likely to be replaced with imports from other countries, such as Venezuela. Unfortunately, this is just the administration bowing to organized labor on an issue that will really have little or no impact on US jobs.

TH

 

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