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China Accused of Unfair Trade

tlmorg02

tlmorg02

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BBC NEWS | Business | China accused over unfair trade

It appears that China is restricting exports of raw materials needed to produce steel. The U.S. and EU have both filed formal complaints with the WTO and suggest that during the recession, China is atempting to harm US and EU steel producers.

China claims they are trying to preserve and protect their environment and natural resources, thus have stepped-up regulation on the exports of the raw materials.

What do you think, is China trying to hurt the other economies?
 
In other news, studies show that ice cream is a cool, sweet treat that you can eat in the hot weather.
 
tlmorg02 said:
http://news.bbc.co.uk/2/hi/business/8116085.stmWhat do you think, is China trying to hurt the other economies?
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They are attempting to prop up their own. Reducing exports of raw materials in favor of exporting finished goods is an ultimately suicidal attempt to sustain an economy driven by exports.

Unfortunately, in a global economy that is contracting, pushing exports, seeking trade surpluses rather than nurturing domestic demand, is merely a fatuous way to export deflation--a trading sin that necessitates reaction and ultimately retaliation by other nations.

China is trying to help their own economy. Unfortunately, they have chosen a means that may amount to economic suicide.
 
celticlord said:
They are attempting to prop up their own. Reducing exports of raw materials in favor of exporting finished goods is an ultimately suicidal attempt to sustain an economy driven by exports.

Unfortunately, in a global economy that is contracting, pushing exports, seeking trade surpluses rather than nurturing domestic demand, is merely a fatuous way to export deflation--a trading sin that necessitates reaction and ultimately retaliation by other nations.

China is trying to help their own economy. Unfortunately, they have chosen a means that may amount to economic suicide.
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My thoughts exactly. I feel they are trying to expand their industries to out-compete the U.S. in steel. I remember when car companies such as GM used Chinese steel in their cars, I had an 1987 S-10 and in rusted to pieces, the steel was cheap and did not compare in quality to that of the U.S

I understand China wants to expand their economy and grow new consumer bases, but if they are penalized by the WTO they are going to see some heavy hits on their economy.
 
tlmorg02 said:
I understand China wants to expand their economy and grow new consumer bases, but if they are penalized by the WTO they are going to see some heavy hits on their economy.
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Think of it as Smoot-Hawley but with eggroll.

Protectionism is pure poison to any economy.
 
celticlord said:
Think of it as Smoot-Hawley but with eggroll.

Protectionism is pure poison to any economy.
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I agree. In the short term, it may hurt the world economy for such protectionism to hurt the Chinese economy. In the long run, it may help sustain the U.S. as the world's strongest economy.
 
Hasn't China been engaging in unfair trade practices for some time now?
 
Birdzeye said:
Hasn't China been engaging in unfair trade practices for some time now?
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I certainly have thought so. They put incredibly high tariffs on anything we export to them and they refuse to allow our agriculture products into their country. Of course on the last point their argument is the same as Brazil and others make, and that is our subsidizing of agriculture is unfair in itself.
 
Birdzeye said:
Hasn't China been engaging in unfair trade practices for some time now?
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Of course. But it has been the usual sort of unfair practice that the WTO and GATT spend their days talking through so that everyone has a chance to be equally unfair.

In recent years, China has been a supplier of 60% of the world's coke supply--coke being an essential raw material in steel manufacture--and has decided to drop their exports of coke from 336 million metric tons in 2008 down to 12 million metric tons in 2009.

That's the unsubtle sort of unfairness that gets nations riled up and escalates trade wars.
 
Even though their excuse about the environment could just as easily be a lie, it's a justifiable one that saves them some face. The best we can do is assume they are lying, but we can't know for sure.

They destroy entire mountains in China looking for ore because there is no regulation preventing it. I've seen it with my own eyes... it's amazing and disturbing. China hasn't yet awoken to the concept that destroying your environment completely will be a detriment to the future of your nation. They still only see immediate gain. Maybe this is a sign that some small part is realizing.
 
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