China Cries Protectionism Against the United States

According to Business Week, the Chinese government is upset with the newly increased tire tariff imposed by the Obama Administration. The 35 percent increase comes in response to the U.S. steelworkers compliant to the U.S. Commerce Department that the Chinese government was subsidizing the steel industry.

”Providing relief for beleaguered tire workers was the right thing to do,” said Scott Paul, executive director of the Alliance for American Manufacturing, a coalition of the USW and steel companies. “President Obama deserves praise for being true to his word and for deciding a trade case based on facts rather than fears or philosophy. It bodes well for U.S. manufacturing that the Administration recognizes the need to enforce our trade laws.”

Beijing officials cry protectionism againist the U.S. government and is exploring the possiblity to file a compliant to the World Trade Organization.

The report claims that President Obama will need to help calm the waters to this disagreement before the G20 summit expected to begin in one week in Pittsburgh. The Chinese President is expected to attend and additional members have already vowed to avoid the subject of protectionism after reading reports to China’s reaction to President Obama’s response to the tariff increase.

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