China Tries Diplomacy in Resolving US Tire Tiff
31 August 2009
English.chinabuses.com: China's deputy minister of commerce, Zhong Shan, paid an unscheduled visit to the United States last week to lobby against a US proposal for punitive duties on Chinese tire exports.
Though the outcome of the mission isn't known, the trip reflected China's determination to resolve trade disputes through negotiation, not confrontation.
The administration of US President Barack Obama will have to make a decision on the tire issue before September 17. The US has proposed raising the levy on Chinese exports of passenger and light truck tires into the US from the current 3 percent to as much as 55 percent.
The Chinese are closely following the issue because it affects the jobs of nearly 100,000 people in China and reflects a growing trend of protectionism amid the global economic recession.
"How China responds will set an example for other cases, which are likely to multiply as countries seek to protect their own economies and employment during the economic downturn," said Xue Lei, a researcher at the Institute for Economic Comparative Studies under the Shanghai Institute for International Studies.
Source : english.chinabuses.com
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