This week, according to an article from the Associated Press, a Chinese trade official said the complaint from the United States about Chinese tire exports is protectionism and could harm relations between the United States and China.
“The government of President Barack Obama is deciding what action to take after the U.S. International Trade Commission ruled in June that increased imports of Chinese tires were harming American tire producers.”
The back story on this is that United States tire makers are trying to impose higher tariffs on cheaply made and sold Chinese tires, because it is hurting the business of American tire makers.
The union hopes the Obama administration will put a cap on Chinese tire imports and Washington has launched an investigation. They are not only going to investigate the tires of Chinese exporters, but also a number of other things.
“In addition to tires, Washington has launched a series of investigations into whether Chinese exporters were dumping goods including wooden bedroom furniture, honey, candles, gift boxes, industrial chemicals and fresh garlic.”
The spokesperson for the Chinese government believes that the United States is attempting to blame China for the current economic climate.
“The union that brought the latest case, the United Steelworkers, says Chinese tire exports to the United States more than tripled in the 2004-08 period to 41 million tires a year. The union said that led to the loss of 5,100 American jobs and another 3,000 jobs could be lost this year.”
The Union hopes that the Obama administration will cap the Chinese tire exports at around 21 million, half of the current tire exports.