RILA: Tariffs on Chinese Goods Would Negatively Effect U.S. Businesses
The Retail Industry Leaders Association reacts after a hearing about China’s exchange rate policy and the current trade imbalance that went before the Senate Banking Subcommittee on Economic Policy, states the American Shipper magazine. The hearing discussed legislation that would allow duties to be imposed on Chinese imports to address currency undervaluation allegations.
“Higher tariffs have never proven to be a wise solution for American economic growth,” said Stephanie Lester, RILA vice president for international trade. “RILA supports economic engagement with China and addressing our trade gap with China. We firmly oppose legislation that threatens to cut off access to the U.S. market and drive up prices for consumers.”
RILA has warned that higher tariffs would negatively effect U.S. businesses and its consumers.
To read more about RILA’s reaction, click here.
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“China’s Imports is a Source of Support for the Global Economy”
BusinessWeek reports that China Trade surplus fell making many believe that China is not just an exporting country anymore.
Imports rose a more than 44.7 percent from a year ago, the Chinese customs bureau reported on its Web site today. The surplus was $7.61 billion, and exports gained 45.7 percent.
“The sustained strength in China’s imports is a source of support for the global economy,” said David Cohen, an economist with Action Economics in Singapore.
On March 6th, Commerce Minister Chen Deming said that the trade surplus fell 50.2 percent in January and February from a year earlier, adding that domestic demand had boosted imports. He said it was too early to say if exports had recovered from the global financial crisis.
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Obama and Hu Jintao to Talk Trade Among Topics to Discuss
President Obama landed in China on Sunday to discuss some much needed topics with President Hu Jintao, according to Time magazine. One topic is trade. In recent months, trade issues has been heated between the two nations as both have thrown around the idea that each nation is participating in protectionism since the recession began.
“They’re working through a lot of scattered issues, but they are working through the WTO,” says James McGregor, the former chairman of the American Chamber of Commerce in China. “In the old days, every trade issue would become a very public and unstructured argument.”
China and the U.S. trade around $400 billion in goods each year. Many trade experts were concerned tension may get too high, making resolution difficult. But, U.S. officials dismiss that allegation, saying that the affected goods are only a small part of the total trade exchange.
Wanna read more: http://www.time.com/time/world/article/0,8599,1939536,00.html?xid=rss-topstories
Chinese-Made Products to Be Made Safe
According to Industry Week, China and the United States are serious about combining efforts to reduce the number of issues with the safety of Chinese-made toys, drywall and other consumer goods that have made a number of people sick or injured.
China’s reputation of corruption in the manufacturing industry in recent years has pushed the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) in China and the U.S. Consumer Product Safety Commission (CPSC) to work together to solve the problem.
“A systematic improvement of practices in the supply and distribution chain will be the most effective means of enhancing product safety,” the agencies said in a joint statement. The watchdogs will focus on improving the safety of toys, all-terrain vehicles, electrical products, lighters and fireworks, the statement said.
President Obama will have his first visit to China since taking office in three weeks. Issues on various trade issues will be discussed.
To view the whole article, click here.
U.S Officials Meet In China to Talk Trade
Today, top trade officials from the United States and China will meet in Hangzhou to discuss trade relations between the two countries, according to Business Week. Recent tension has added some much needed topics to the table to discuss, particularly protectionism.
Beginning in September, President Obama added 35% duties on China-produced tires. And earlier this month, the U.S. Government launch an investigation into whether to raise tariffs on Chinese-made steel pipes. The Chinese Government quickly responded by launching its own investigation into possible anti-dumping of chicken and auto parts by U.S.
Other topics the U.S trade representatives want to discuss are:
- undervalued Chinese currency
-and, China’s poor record of protecting intellectual property rights, such as software, movies and music
Check back for changes that come from today’s meeting.
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China – Leader in Global Trade
Anyone surprised by this new report? According to the New York Times, the recession has made companies more conservative on price. So now, these companies are looking to Chinese suppliers, who have reduced prices, making it possible to grab the majority of the market share. Companies around the world are switching to China to cut costs and save money, making it easier for Chinese suppliers to gain leads in old markets and obtain new ones. China has surpassed Germany on exports this year and has become America’s number one importer (formerly Canada).
How can China make such a leap into the global trade leader? According the New York Times, Chinese manufacturers cut wages, reduce production costs and hire migrant workers.
“China has a huge advantage,” says Nicholas R. Lardy, an economist at the Peterson Institute for International Economics in Washington. “They can adjust to market changes very rapidly. They have flexibility in their labor markets. And as consumers trade down the quality ladder, China can benefit.”
Recently, the European Commission is requesting an investigation into antidumping from Chinese exports and the International Montary Fund wants China to re-balance its economy by raising the value of its currency to match those of the Euro or the U.S. dollar.
Will China continue to hold the number one position in export?
“China is going to get stronger,” Mr. Tao at Credit Suisse says. “Its competitors are getting weaker in the downturn. And the Chinese state has helped bail out some industries, like the auto industry; so in the future some new industries may emerge as exporters.”
To read the full article, click here.
Green Light Given for Global Trade Green Pact
The European Union and the United States are in talks on forging a pact with OECD countries and China, if agreed, a global pact will be created to phase out import tariffs on goods such as wind turbines, renewables and green technologies.
“The talks are entering an advanced stage. Brussels and Washington hope this could be one of the incentives needed to get China on board in the lead up to the Copenhagen climate change talks,” one EU diplomat.
Several U.S. companies are urging the Obama adminstration to find alternatives routes to help boost global trade in environmental goods and services.
It’s a chance to jump-start U.S. trade policy and aid global climate negotiations at the same time,” said Jake Colvin, vice president for global trade policy at the National Foreign Trade Council, a U.S. business group.
Not only to boost global trade, but helping the environment is one of the major factors intented for this tax pact. The United States and the European Union has put a lot of pressure on China to lower it’s emissions, but in return China wants money to help harness new greener technologies for its economy.
Further discussions will take place at the World Trade Organization in Geneva.
For more information, click here.
*all information sourced from a recent Reuter article.
China and the U.S. Continue To Battle Out Its Trade Differences
The Wall Street Journal reports that China has appealed to the World Trade Organization (WTO) over its August ruling on entertainment imports, such as Hollywood dvd releases and downloadable music from Apple, Inc. Reports claim that their attempt reflects the recent trade tensions between the U.S. and China because of the increased tire tariffs and chicken import investigation.
China appeals to WTO on grounds of ‘public moral’ stating that it must protect its citizens from Westerized media.
“…China must now prove its trade restrictions are necessary to protect public morals,” says Brendan McGivern, a Geneva-based trade lawyer for White & Case LLP. “It will be a difficult argument to make.”
The WTO’s August ruling required Beijing must stop forcing U.S. artists and production companies to go through state-controlled distributors.
To read the full article, click here.
Government Tense as Claims of Protectionist Rises
The Associated Press reported that as the G-20 summit will commense next week in Pittsburgh, many governments are tense with new report issued claims of more evidence of protectionism.
“The protectionist juggernaut shows no sign of slowing down,” the organization said in a report published Friday. “Almost every nation has been harmed by these measures.” And, the report said, “Another six months of protectionist measures are in the pipeline already.”
The recent US – China argument against the tire tariff and the chicken feet have only raised awareness to the other G-20 members, who have promised to not talk about this issue at the Summit.
To read the full article, click here.
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.
To read the full article, click here.