(Thumbnail image from ForeignPolicyBlogs.com)
“China is launching a trade probe. It’s accusing the US of selling American auto parts and chickens products below market value. Now, the announcement comes just two days after the US imposed a 35% tax on Chinese tires. Chinese industry officials say they are being given unfair trade regulations.” (CNN)
There is growing debate about how the trade dispute between China and the United States could affect global markets and relations at this month’s G-20 summit in Pittsburgh. We’re looking at perspectives from Bloomberg, CCTV, the London Telegraph, FOX News Business and the Los Angeles Times.
Bloomberg reports on the policy tug-of-war surrounding President Obama imposing tariffs last week.
“The United Steel Workers had petitioned for the penalties saying cheap imports were forcing domestic factories to close, but free traders say the US might be sparking a new trade war between the US and its number two trading partner.”
Critics of the tariffs say that a trade dispute between two of the world’s largest economies could cause a disruption in global trade.
“And we all know what created such great global growth particularly in this decade was globalization, free trade, lifting middle class areas around the world. Whether it was Brazil or China or other areas of Asia, so any crimp on that global trade is going to have global consequences unfortunately.” (FOX Business)
So why do it? The Chinese government told state-run television network CCTV that the U.S. has no reason to tax Chinese tires because exports of tires to the United States have actually decreased in the past year.
“U.S. tire producers have seen no apparent changes after the entry of Chinese products. There is no direct competition between tires from the two countries because Chinese tires mainly target the maintenance market.”
The Los Angeles Times is reporting that the Obama administration says they are only following international trade laws and regulations, but others say they are playing politics.
“Obama made his decision after the U.S. International Trade Commission recommended a 55% tariff. Obama’s decision was seen by some as a political move to fulfill his campaign trade promises to maintain the support of organized labor.”
A Chinese government official told the Shanghai Daily that the Ministry of Commerce has already filed a complaint with the World Trade Organization in order to protect the country’s interests. What do you think?
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