U.S. trade protectionism may compromise its glass industry

Sino-US trade friction in the current series of cases,        In this series of cases of trade friction,
involving about 30 billion oil pipe case is the case withChina's steel products have become the main
the greatest value. However, from the U.S.target of sanctions. According to Chinese customs
Department of Commerce ruled on November 24 instatistics, in 2008 the product concerned, the amount
view of the Chinese oil well pipes encounteredof 3.2 billion U.S. dollars, accounting for the same
"dual" (Anti-dumpingperiod China's total steel exports to the United
Marketing and countervailing) seems a foregoneStates (69 million) 46%. Involved more than 90 steel
conclusion punitive sanctions, the U.S. Internationalcompanies, including Tianjin Steel, Bao Steel, Anshan
Trade Commission's final decision will be madeIron and Steel and other major state-owned large
next year on January 7. All signs appear, Sino-USiron and steel enterprises.
trade protectionism, the U.S. trade friction caused by        This series of cases involved and
the trend of the future still continues to spread.amounts of time close to rare in recent years,
        OCTG "dual" or as decisionhighlighting the financial crisis, the United States under
        24 U.S. Department of Commercethe trend of trade protectionism.
Countervailing part of the final award is about. In this        In addition to these
final determination, the U.S. Commerce Department"dominant" trade litigation disputes, there
declared the existence of Chinese governmentare also many "hidden" and damage
subsidies oil well pipe, affected by the 2008 oil"China" case. For example, in the New
exports to the U.S. control over China's growthYork World Trade Center building, as some Chinese
in 2006 was 357.67 percent, reaching 2.8 billion. Finalcompanies winning the contract proof glass, resulting
Decision in accordance with U.S. Department ofin a number of people dissatisfied with the United
Commerce, Tianjin Steel Group products areStates and stirring up trouble. American Manufacturing
subjected to 10.36% of the countervailing punitiveUnion recently sent a letter to U.S. trade officials,
tariffs, another lesson in Zhejiang enterprise productsseeking to address what they view as "unfair
were 15.78% punitive tariffs on most othertrade" acts. Letter said: "We the
enterprise products to be subject to 13.2% punitivedomestic glass industry the most efficient in the
tariffs.world, but not with the heavily subsidized by the
        According to Chinese governmentChinese government's product
statistics, the value of the relevant case to reach 3.2competition." Chinese glass face "double
billion. No matter which according to statisticalreverse" investigation, might be only a matter
standards, this is so far the U.S. and foreign-initiatedof time.
case the value of China's largest trade        Beware of trade friction, "out of
sanctions with the case.control"
        U.S. countervailing lengthy process,        As the two largest trading partner,
according to relevant regulations, the Ministry ofsome China-US trade disputes, friction is normal.
Commerce ruled that mainly occur if there areHowever, frequent use of U.S. trade remedy
subsidies, subsidies for the ratio of the number; U.S.measures, while China's bad for business, it may
International Trade Commission ruled that the U.S.not really help the U.S. economy.
industry, mainly related to whether the damage. If        As an example, China's tire
the final determination of both the establishment of aexports to the U.S. blocked by the U.S. cheap tire
foreign government subsidies, the Ministry ofprices rose sharply recently, or has reached 10%
Commerce of the relevant products can be ordered-28%. According to industry sources, the current
Customs to implement countervailing sanctions.gains are still preliminary, with the effects of special
        In May of this year's initial ruling,protection cases have increasingly shown, cheap tire
the U.S. International Trade Commission hasprices will continue to rise. "Washington
determined that China's oil pipe harmful to U.S.Times" editorial pointed out that the Obama
industry, the Commission's final ruling isadministration to implement safeguard tire is
expected to be made next year on January 7. Notlow-income families suffer the consequences of the
surprisingly, then, the Commission will maintain thenew loss, they "will be forced to postpone the
original verdict in the final ruling, so anti-subsidyreplacement of old tires, which will allow these
sanctions against China oil pipe facing a foregonefamilies face greater risks . "
conclusion.        World Bank President Zoellick told
        But the U.S. sanctions on China oil pipe,reporters that, as a basic principle, if possible, the
does not end with a subsidy. 5 this month, accordingparties concerned should resolve trade disputes
to the U.S. Department of Commerce made athrough negotiations. "So, I hope that the
preliminary determination of anti-dumping, 37 ChineseUnited States and China to resolve these disputes
companies will face anti-dumping, ranging fromthrough the final lowering of trade barriers, rather
36.53-99.14% punitive tariffs. Expected, the Ministrythan increase the anxiety of people on the
of Commerce and Trade Commission's finalprotectionist."
ruling in the subsequent sanctions also will continue        Sino-US trade relations have become a
the green light.bit nervous now, but long-term and global
        Textiles, glass, into the next terrorperspective, both the current round of trade frictions
target for attacksshould not deteriorate. Obama had told U.S. media
        The recent rise of U.S. tradethat when he tires safeguard triggered discontent in
protectionism, an important factor, is the U.S.China was not surprised, but the United States and
government adopted a laissez-faire attitude. AmongChina have huge economic ties, he believed that a
them, the tires safeguard also set a very badtrade war between the two countries will not.
precedent. According to industry sources, inspired by        Perhaps, from another perspective,
the tires safeguard, the U.S. textile groups and theObama dare this adventure is that the increasingly
major textile workers are in close contact, researchclose China-US relations, which should not lead
on Chinese imports of clothing brought the possibilitybecause of these little tricks "out of
of special protection.control." Therefore, Georgetown University, the
        From this year, the United StatesChinese expert Baldor cover also joked with
against Chinese products have been launched 10reporters, sometimes, also nothing wrong with these
anti-dumping and countervailing merger investigations,little friction as the overall relations between the two
two anti-dumping investigations, one from the specialcountries "positive signal", of course, the
protection. According to the Chinese Ministry ofUnited States can not be played fire, because if it
Commerce, saying, "placed on file with highleads to a trade war, the result will undoubtedly be
frequency in the history of world trade remedies aredisastrous.
extremely rare."