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Rubber meets road in tire case
By Fu Yunwei and Xia Wenhui |
September 4, 2009, Friday
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Print Edition
Print Edition
US President Barack Obama is due to decide in about two weeks whether to impose punitive duties on Chinese tire imports.
The decision is due by September 17. Some trade protectionists are insisting on imposing punitive duties of up to 55 percent on Chinese tires to "save American jobs."
The case has become an opportunity for some politicians at the center of US partisan politics to make a show. However, the US government is strongly expected to take into account the long-term development of Sino-American trade relations in making its decision.
Details of the case have emerged clearly after several rounds of consultations, reviews and hearings between the two nations. The United Steelworkers of America had claimed that tires from China had led to loss of more than 5,000 jobs and the US International Trade Commission accused Chinese tire firms of disrupting the US market.
However, the charges were invalid, regardless of the fact that the tires produced by China and the United States belong to different levels of the US market and are not in direct competition.
If the punitive duties being called for by some politicians and trade protectionists are imposed, more than 10,000 Americans in the tire distribution and retail sectors may lose their jobs, along with about 100,000 Chinese manufacturing workers. In addition, US tire firms with investment in China will suffer.
Based on these figures, punishing China's tire exporters will lead to a lose-lose situation and the tariff demand calls for strong opposition from both sides. Notably, accusations against Chinese tires failed to win support from some American tire firms and unions.
As the first "special safeguard investigation" on Chinese products under the Obama administration, the US decision on this case will be seen as an indicator of the government's policies, and it thus has drawn particular attention.
The Chinese side has carried out close coordination and dialogue with the United States, in the hope of maintaining reasonable trade rules and protecting the rights of both Chinese and US workers and firms.
China and the United States are each other's second-largest trade partners, and their interests and concerns are closely intertwined.
With the global economy showing early signs of recovery, the international community should work harder to strengthen cooperation and try to avoid trade friction and curb protectionism.
(The authors are Xinhua writers.)
The decision is due by September 17. Some trade protectionists are insisting on imposing punitive duties of up to 55 percent on Chinese tires to "save American jobs."
The case has become an opportunity for some politicians at the center of US partisan politics to make a show. However, the US government is strongly expected to take into account the long-term development of Sino-American trade relations in making its decision.
Details of the case have emerged clearly after several rounds of consultations, reviews and hearings between the two nations. The United Steelworkers of America had claimed that tires from China had led to loss of more than 5,000 jobs and the US International Trade Commission accused Chinese tire firms of disrupting the US market.
However, the charges were invalid, regardless of the fact that the tires produced by China and the United States belong to different levels of the US market and are not in direct competition.
If the punitive duties being called for by some politicians and trade protectionists are imposed, more than 10,000 Americans in the tire distribution and retail sectors may lose their jobs, along with about 100,000 Chinese manufacturing workers. In addition, US tire firms with investment in China will suffer.
Based on these figures, punishing China's tire exporters will lead to a lose-lose situation and the tariff demand calls for strong opposition from both sides. Notably, accusations against Chinese tires failed to win support from some American tire firms and unions.
As the first "special safeguard investigation" on Chinese products under the Obama administration, the US decision on this case will be seen as an indicator of the government's policies, and it thus has drawn particular attention.
The Chinese side has carried out close coordination and dialogue with the United States, in the hope of maintaining reasonable trade rules and protecting the rights of both Chinese and US workers and firms.
China and the United States are each other's second-largest trade partners, and their interests and concerns are closely intertwined.
With the global economy showing early signs of recovery, the international community should work harder to strengthen cooperation and try to avoid trade friction and curb protectionism.
(The authors are Xinhua writers.)
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