China-U.S. trade tensions mount
China is launching antidumping investigations into imported U.S. auto and chicken products, the government said Sunday, adding to a string of trade disputes with Washington including a recent decision to raise tariffs on Chinese-made tires.
The Commerce Ministry said it would look into complaints that American auto and chicken products are being dumped into the Chinese market or are benefiting from subsidies. The ministry said there are concerns the U.S. imports have “dealt a blow to domestic industries.”
The ministry statement did not elaborate on the complaints or how the investigation would proceed.
Washington and Beijing have recently traded accusations of protectionism, which they agree will hurt efforts to end the global economic crisis.
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fernstalbert Says:
The Americans are beholden to the Chinese to buy their debt - why trade sanctions with their “bankers” at this point in time? The US is living on a fantasy that they are still in charge of their economy. When will this administration think before acting. It will be interesting to see if the Chinese punish these actions by drying up the money source. Cheers.
Posted on September 13th, 2009 at 2:06 pm
Jack Says:
Re: #1 — ” It will be interesting to see if the Chinese punish these actions by drying up the money source. ”
As most know China owns much of the US debt and for sure they aren’t going to get in any deeper. Fern has asked a good question but there’s more to it.
I had a discussion with my daughter and her husband as we sat outside last night on this very point and my question was “Yah but” – China owns much of the US debt. “I know they can sell it off but wouldn’t they be shooting themselves in the foot as the US dollar is devalued?”
Just asking because I truly don’t know.
My point: I suspect that China engaged in buying up US debt as a way of controlling the country but it’s like flypaper. Very sticky stuff.
Enforce control and go bankrupt.
This debate is way beyond my paygrade and I’ll leave it for others to kick around. As I said — “I don’t know.”
Posted on September 13th, 2009 at 2:28 pm
nomdeblog Says:
What is it that China has done wrong? Other then sell tires competitively and gain market share (referred to by the Obama admin as a surge) against uncompetitive unionized American production.
It would appear that this is a ploy for Obama to get union support for his ObamaCare. American consumers will soon be paying more for their tires as well as their Health.
The unintended consequences of starting a trade war with China are high risk, particularly since China holds so much of the US debt which will increase with the trillions in deficits Obama is running up. I’m like Jack, there are too many variables to know the consequences. But common sense will tell you that your negotiating power diminishes with someone you owe a lot of money to and who you want to borrow even more from.
The good news for Canada is the world is progressing even without America. More then half the world is middle class now thanks to emerging countries, according to the Economist. So Canada needs to tap into those global trade opportunities and rely less on backsliding Obamaland and the Euroweenies he wants to copy.
Posted on September 13th, 2009 at 6:49 pm
Cunctator Says:
“The good news for Canada is the world is progressing even without America.”
What an astonishing comment. Almost 90 percent of our trade is with the US. In other words, if the US border were sealed, Canada would turn into a third-world state in a few weeks. We are also completely dependent on the US for our security — Washington’s tax payers pay for the US military assets that protect North America. And, further afield, it is US power that upholds the international system, its rules and institutions. In fact, most of those institutions were created by the US, and Washington has paid and pays a disproportionately large share of the operating costs (either in cash or blood).
I detest Obama and what he stands for, but I recognise that the danger he poses to US democracy, its international stature (being feared, rather than loved!) and to his country’s economic vitality will, in time, impact negatively on this country.
Posted on September 13th, 2009 at 7:48 pm
nomdeblog Says:
Why do you say that is an astonishing comment? Are you saying the world isn’t progressing?
Precisely because Canadians have lived on the back of the USA for trade and R and D and are dependant on the USA for our security, ergo we’d better rethink our position.
I agree with most of what you say about the USA.
Therefore I’m astonished that you’re astonished. I think we better get global in our outlook, particularly with the BRICS. What do you propose we do? Not adapt?
Ohh and our US trade is no longer 90%, it is trending down to 70% and a big chunk of that is commodities, easily sold elsewhere, admittedly plus higher transportation costs. It will be tough but we can’t sit and watch Obama destroy the US economy until 2012. We should capitalize on the trade wars he’s starting.
Posted on September 13th, 2009 at 8:36 pm
mike Says:
China depends on the US for buying a lot of their products so they have to be careful how they play this as well. There is a delicate balance that if it is lost then the catastrophic results will sweep over the world economy.
mid island mike
Posted on September 13th, 2009 at 10:05 pm
Jack Says:
Re: #6 — “China depends on the US for buying a lot of their products so they have to be careful how they play this as well.”
That is my concern also. Without western markets to sell to China and India will run into a huge problem. Having said that I will also say this.
Companies resident in Canada and the US who choose to move offshore because of cheap labour and then import their much cheaper products back into our markets should be penalized to the point where moving offshore would make little difference to their bottom line. I suppose that could be called protectionism but in my tiny mind our workers come first and so I’m not certain Obama is wrong on this issue.
The man may have a point.
Posted on September 14th, 2009 at 2:44 pm