US to China - Play by the rules

[GoFlyKiteNow]

U.S. duties on China tires to enforce rules: W.House

MINNEAPOLIS, Sep. 12, 2009 (Reuters) — The U.S. decision to slap steep additional duties on tire imports from China is meant to enforce trade rules and not spark a trade war, the White House said on Saturday.
Related Topics

"This is simply about enforcing the rules of the road and creating a trade system that is based on those rules and is fair for everybody," White House spokesman Robert Gibbs told reporters on Air Force One as President Barack Obama traveled to talk about his healthcare initiative.

Less than two weeks before world economic powers meet in Pittsburgh to discuss their efforts to help countries recover from the global downturn, the spat over the tires threatens to overshadow the gathering.

Still, amid a sharp rebuke from Beijing, the White House said that the new duties would not risk provoking a trade war with one of its biggest trading partners.

"For trade to work for everybody, it has to be based on fairness and rules," Gibbs said. "We're simply enforcing those rules and we expect the Chinese to understand those rules."

The new duty of 35 percent will take effect on September 26 and adds to an existing 4 percent duty. The extra duty would fall to 30 percent in the second year and 25 percent in the third year.

 

[kakowi]

MINNEAPOLIS, Sep. 12, 2009 (Reuters) — The U.S. decision to slap steep additional duties on tire imports from China is meant to enforce trade rules and not spark a trade war, the White House said on Saturday.
Related Topics

"This is simply about enforcing the rules of the road and creating a trade system that is based on those rules and is fair for everybody," White House spokesman Robert Gibbs told reporters on Air Force One as President Barack Obama traveled to talk about his healthcare initiative.

In what way does the USA equate tires with healthcare?

 

[besotted]

China shud dump 35% of its Treasuries to teach the arrogant dog a lesson

 

[Zombie]

Fair rules of Protectionism?

 

[SamuelStalin]

China shud dump 35% of its Treasuries to teach the arrogant dog a lesson

Well said dude!!!

 

[longbow]

Dangerous game US is playing. World economy at the moment is resting on the shoulders of US and China. Without them, world would probably sink into deep depression.

Both countries have huges domestic consumption and without their consumption there will be problems. Both countries have the ability to pump prime their economy - China because they can afford it and US because the Chinese continues to fund US debt.

China has a rapidly growing automobile market (as big as US demand!). US auto firms are all vying for a piece of this market. Does not take much for China to throw up a wall against US interest like Goodyear, GM, Ford, chrysler. 2 years of tit for tat sanctions and US would have lost the Chinese market. The Europeans and Japs would love it.

Anyway pure silliness. And yes, there is still the big problem of US debt. Should the Chinese signal that they might reduce purchasing such debt (not talking about dumping US Tresuries), I think interest rates would shoot up in the US.

This will hurt both countries badly. But I suspect the one that will be hurt more would be the US, given that the US is in a weakened position.

I suspect China is letting their surrogates do the fighting for them. GM, Ford and Chrysler and probably even Goodyear for one is probably lobbying Obama to stop this silly nonsense -after all they future is at stake.

 

[SQguy]

One way trade is not good for any country and China should start buying products from world and reduce its trade gap to be more manageble. Every country should make sure one way trade just creates issues with unemployment and other social issues. China should improve the social conditions of their workers this will in turn create local demand. Just depending on exports only is not a good idea when going gets tough.

 

[Loofydralb]

China shud dump 35% of its Treasuries to teach the arrogant dog a lesson

The US is already telling the Chinese dog to heel, and the stupid China dog is actually heeling!

Hear any protests from China? Hah!

 

[longbow]

Aiyoh given the Chinese a few days to respond. Anyway, doubt if Chinese will do tit for tat. Suspect WH is getting quite a few heated calls from large US industry interest.

 

[scoobyhoo]

usually, china is soft. after few punches, just a kiss can pacify them.

 

[poore]

fuck the US!

i really cant stand the US more and more...

 

[annexa]

U.S. duties on China tires to enforce rules: W.House

MINNEAPOLIS, Sep. 12, 2009 (Reuters) — The U.S. decision to slap steep additional duties on tire imports from China is meant to enforce trade rules and not spark a trade war, the White House said on Saturday.
Related Topics

"This is simply about enforcing the rules of the road and creating a trade system that is based on those rules and is fair for everybody," White House spokesman Robert Gibbs told reporters on Air Force One as President Barack Obama traveled to talk about his healthcare initiative.

Less than two weeks before world economic powers meet in Pittsburgh to discuss their efforts to help countries recover from the global downturn, the spat over the tires threatens to overshadow the gathering.

Still, amid a sharp rebuke from Beijing, the White House said that the new duties would not risk provoking a trade war with one of its biggest trading partners.

"For trade to work for everybody, it has to be based on fairness and rules," Gibbs said. "We're simply enforcing those rules and we expect the Chinese to understand those rules."

The new duty of 35 percent will take effect on September 26 and adds to an existing 4 percent duty. The extra duty would fall to 30 percent in the second year and 25 percent in the third year.

Whose rules?
Who agreed?

 

[Loofydralb]

Whose rules?

Tha USA lah!

 

[longbow]

Actually this is an excellent case study on the interdependent economies of US and China. Apparently no one wants this sanction including Goodyear and Coopers (US owned tire manufacturers). Goodyear has a presence in the booming Chinese automarket. Local tire retail chain are against this sanction because cheap tires make for good value and margins.

The only ones that want the sanctions are the union workers at the US plants. US has been able to flood the market with $$$$$/low interest and yet not see any inflation, partially because of cheap Chinese imports which help keep prices stable. Just look at Walmart's growth.

The thing is that no US tire manufacturer can sell tires at the price of the Chinese. So consumers are going to have to pay more (inflation?). Importing tires from India or Indonesia comes back to square 1 because they replace US jobs not to mention that they are not price competitve and are not of as high a quality as the Chinese made tires. This lack of quality is due to the types of cars being sold in their economies vs what one can find in China.

The free market economy has shown that as much as US consumers cheer about buying American, they are only more interested in value and pricing.