China Probes ‘Dumping’ of U.S. Auto, Chicken Products

Sept. 13 (Bloomberg) -- China announced a probe into the alleged dumping of American auto and chicken products, two days after U.S. President Barack Obama imposed tariffs on imports of tires from the Asian nation.

Chinese industries have complained that they’re being hurt by “unfair trade practices,” the nation’s Ministry of Commerce said on its Web site today. The ministry is also looking into subsidies for the products, it said. It didn’t specify the imports’ value.

The European Central Bank said last week that rising protectionism may hamper world trade and undermine the global economy’s recovery from recession. The U.S. placed tariffs starting at 35 percent on $1.8 billion of tire imports from China, backing a United Steelworkers union complaint against the second-largest U.S. trading partner.

“While there’s friction, I suspect that the two nations will keep any disputes under control,” said David Cohen, an economist at Action Economics in Singapore. “They understand that they’re increasingly dependent as trading partners.”

Dumping is selling goods for less than the cost of producing them.

China’s commerce ministry said yesterday that it “strongly opposes” the U.S. decision on tires and may refer the case to the World Trade Organization.
...

“A sluggish global recovery and rising unemployment may increasingly tempt governments to adopt restrictive trade policy measures, which could lead to a retaliatory spiral of ever harsher trade restrictions and tensions,” the Frankfurt-based ECB said in its monthly bulletin. A resurgence of trade protectionism would “significantly impair the global recovery process” and reduce growth potential in the long run, it said.

http://www.bloomberg.com/apps/news?pid=20601087&sid=a7nGNZzouDOM

Retaliation doesn't take too much time...

 

We should fire a second volley against more chinese products.

They make 98.63% of everything we buy in the US.

They will end up losing out if we close the doors to those chinks.


They should bow and say thank you and we so sorry for dumping tires and shut up. They make enough money, either throw us a bone or get the obamashaft.

 

I hate to say that China is more and more like the old capitalism US and US is more and more like the old Socialism China.

 

Too true

 

The major loser in a trade war between US and China will be China. China is bluffing big time. They are at the mercy of US fed policy with their dollar hoards, and now they are at the mercy of Congress with trade policy. So much for world domination.

 

You don't worry about that. If you have observed what happened in the last couple of months then you would have noticed that China was on a buying spree of "real assets" ! An stock listed oil company here, a coal miner there, some oil sands in Canada...

http://www.reuters.com/article/rbssCoal/idUSSYD36232920090813

http://www.financialpost.com/news-sectors/story.html?id=1947720

 

It will be interesting how China behaves in the Treasury auctions from this point forward. It wasn't in the US best interest to put the tariff in place, bad economic and political policy.

 

At this rate the only assets left for Chinese to buy will National/State Parks. Hey, Maybe Schwarzennegger in Cali can sell a few of those to generate some temporary cash?
I'm sure they could find some oil, copper & gold in those lands.

 

Why doesn't Chinese prob American dumping corn, wheat and fertilizers into China? Chinese should only buy those from South American.

Anyway, protectionism is bad for business.

 

LOL, maybe you like to see interest rate jump to 10% and more, base on your logic, it will be really good for US. LOL, talking about incompetent.

The greatest Job of wallstreet is to invent some assets out of letters printed on paper, which will be better than any working fruits of sweat and blood.