Trader war as China imposes tariffs on US chickens

Discussion in 'Wall St. News' started by MohdSalleh, Feb 9, 2010.

  1. China to put duties on US chicken

    Page last updated at 11:27 GMT, Friday, 5 February 2010

    China is to enforce anti-dumping duties on US chicken imports, accusing American poultry firms of exporting the meat at unfairly low prices.

    In just the latest in a series of trade disputes between the two countries, China's Commerce Department said the tariffs will start from 13 February.

    China launched an investigation into US chicken in September, a day after the US put tariffs on Chinese tyres.

    President Obama said this week he would get "much tougher" with China on trade.

    Tensions between the two nations have been further exacerbated by the US president saying on Tuesday that he intended to go ahead with plans to meet the Dalai Lama, the Tibetan spiritual leader, despite China calling for the meeting to be abandoned.

    Beijing has also been angered by the US's new $6.4bn (£4bn) arms deal with Taiwan.

    'Hurting Chinese producers'

    The duties will primarily hit exports of US chicken wings and feet to China, a big business for US poultry companies.

    Both products are considered delicacies in China - especially chicken feet, which are not popular in the US.

    As a result, the price they sell for in China is much higher than in the US.

    "Chicken feet and wings are not wanted in the US so they sell them to China, they dump them below cost," said Wang Xiulin, president of the Chinese Poultry Association.

    “ The US will pay a heavy price if it intends to engage in a new Cold War with China ”

    "For over a decade, the US has sent big volumes of chicken to the Chinese market, hurting producers here.

    "Last year, the Chinese poultry industry was really hurting so we asked for this investigation."

    The duties will differ across the various main US chicken firms, with Tyson Foods having to pay 43.1% on top of its current Chinese prices, Pilgrim's Pride an additional 80.5%, and Sanderson Farms an extra 64.5%.

    The Commerce Department said its ruling was a preliminary one, but did not give any indication of when it will make its final decision.

    The US Trade Department has yet to comment on the case.

    'Wrongful accusations'

    President Obama said on Wednesday that he would adopt a tougher line in trade disputes with China.

    The US is particularly concerned with the Chinese currency, the yuan, which it accuses Beijing of keeping deliberately undervalued so as to give Chinese exporters an unfair advantage.

    The Chinese government has consistently denied this claim, saying earlier this week that "wrongful accusations and pressure" would not help trade relations between the two countries.

    The two nations have also had trade rows over Chinese clothing and food exports, the high level of music and film piracy in China, and the access of US firms to the Chinese market.
  2. Not all that suprising. The USA has been increasing its protectionism since the first bailout package with their "buy American" clause. Canada was only recently exempted on this after months of lobbying.

    Does anyone else find it hilarious that China is complaining about another country shipping them cheap shit?
  3. clacy


    If I were China, I would be trying to avoid a trade war at ALL costs.
  4. mmm tit for tat ...tyres for chickens
  5. Buzzed


    Now China knows how it feels. A taste of their own medicine. :D
  6. Canada is by no means America, nor does Canada represent American interests. Exempting Canada is hypocritical on our part.
  7. This is good, because I eat a lot of chicken. Maybe the price will drop to around .50 cents for a pack of 5 drumsticks instead of the now 3-4 bucks.
  8. Um.... ok. Seems they just don't like competition.
  9. Chicken feet??!? WTF chicken feet?

    If I have every heard saber rattling, this is it.

    Who the hell cares about chicken feet. Read between the lines and draw your own conclusions. I have been around this world long enough to know this has fuckall to do with chicken feet.