After reading both articles I began to plunder to see how imposing tariffs between the two nations benefited jobs particulary in the USA in the long run and then china in any way. So, I started looking but instead of finding what I really was looking for. I found each side had a valid argument. After the article was written in February regarding the tire -while there are legitimate reasons why this tariffs was imposed on each side according the China Post, “Obama's decision angered China. They accused Washington of violating World Trade Organization rules and breaking a commitment made by Group of 20 developed and developing country leaders not to impose new protectionist measures.” Yet, the USA maintains that, China post again stating, “The United States has defended Obama's decision as legal under an anti-import surge mechanism China agreed to let other countries use when it joined the WTO in 2001. The dispute is still in litigation at the WTO. The US China Business Council acknowledged in its report that imports of tires from China “are indeed down.” http://www.chinapost.com.tw/international/americas/2010/08/27/270268/Obama-tire.htm
Ultimately, The Chinese decision hit the us poultry industry hard. The La times stated recently, “The price of American chicken, including the prized feet euphemistically called "phoenix talons" in China, shot up between 50% and 100%, which will cost the U.S. poultry industry an estimated $1 billion in sales by the end of this year.” This is a huge impact on usa jobs.
http://mobile.latimes.com/p.p?a=rp&m=b&postId=877900&curAbsIndex=0&resultsUrl=DID%3D6%26DFCL%3D1000%26DSB%3Drank%2523desc%26DBFQ%3DuserId%253A7%26DL.w%3D%26DL.d%3D10%26DQ%3DsectionId%253A6905%26DPS%3D0%26DPL%3D3 On the other hand, the Chinese economy is hurting from the war between both countries. La time stated further that , “Imports of U.S. chicken to China have plunged 90% since the imposition of the tariffs, which are largely seen as retaliation for U.S. duties of 35% on Chinese tires.” This is also impacting the industry of on the Chinese front that depended largely on imported chicken from the US.
In terms of a policy that can resolve this issue. There does not seem to be light in the tunnel. The case is still in court and the WTO is being left to make all decisions. As lately as September 21st 2011, the LA times reported that both sides are still defending their position with counter arguments. The US stated,"China seems to have failed to observe numerous transparency and due-process requirements, failed to properly explain the basis for its findings and conclusions, incorrectly calculated dumping margins, incorrectly calculated subsidy rates and made unsupported findings of injury to China's domestic industry," the trade office said.In a response Wednesday September 21st , China's Ministry of Commerce released a brief statement rejecting the U.S. claim."China's anti-dumping measures follow the law and are in accordance with WTO rules," the statement said. "China will study requests from the U.S. carefully and handle them under the WTO's dispute settlement system."
What’s missing in the puzzle is the political motivation on each side to raise tarrifs. President obama’s administration depends heavily on the unions . The tire industry plays a huge role in many unionized jobs. What amazes me the most is none of these measures seem to have had a positive impact on jobs other then politics.. It seems more to me as a war for supremacy then a war on tires and chicken feet. China is still showing it prowrees and or potential world power abilitiesl subtly, ie trip to the space, http://globalspin.blogs.time.com/2011/09/29/with-latest-launch-china-plots-course-for-space-station/, while American making its final space misson bearly 3 months before, Kennedy Space Center for the final launch of NASA's space-shuttle program http://www.time.com/time/health/article/0,8599,2082213,00.html#ixzz1ZPEwVXbUAmerica losing its grip slowly credit dropped by s&P rating. And china on the other hand holding the largest of America’s debt. This conjoined twins relationship is becoming a subtle diabolical issue. While this is an interesting analogy, cnn cnn money on “ -- If you owed somebody a lot of money, let's say for the sake of argument nearly $900 billion, you probably wouldn't want to make this creditor angry, right? Yet cnn money states “, as strange as it may seem, the fact that the U.S. is so heavily in hock to China may actually give America a bit of an edge in further economic negotiations. Further stated in the article by a contributor is . "If the bank lends you a thousand dollars, the bank owns you. But if the bank lends you a million dollars, you own the bank." As ironical as it sounds. It seems like the debt arrangement is working counter to the expectation of china. Hence America is still playing boss . http://money.cnn.com/2011/01/18/news/international/thebuzz/index.htm
Well, with all that said, the seemingly mutually prosperous union is slowly turning into an unending battle on both sides.. In terms of a fiscal policy that can resolve or mitigate this type of trade war. I would personally say, this is a difficult one go predict or consider an easy solution to.
Ultimately , for whatever reason, the domestic implications on both sides holds enough water to continue the fight legally. I feel it will take a need to set aside differences and find common ground on both sides in order to resolve this and even begin to think about a policy mutually beneficial in this matter.
