China: US Breaks WTO Rules

♠ Posted by Emmanuel in , at 8/23/2007 11:06:00 AM
US-China trade disputes have almost become the IPE Zone's stock-in-trade. At times, though, I get bored with all the posturing these countries adopt as they vie for dominance in the global political economy. Case in point: We now have China making largely inactionable accusations that the US is violating WTO rules with regard to anti-dumping and anti-subsidy measures aimed at China. My point here is that China is unlikely to find a sympathetic international audience as other countries are also having difficulties dealing with a veritable tsunami of Chinese exports. Nor is the WTO going to wade into the matter unless China brings its own cases against the US in Geneva.

As you know, China has the all-important trump card to play if it chooses to that would be far more effective in getting its message across than bellyaching episodes like this one which fail to catch anyone's attention save for the IPE Zone's: sell some dollar-denominated reserves. Geopolitics aren't for the faint of heart, and the US hasn't exactly kept its place by playing Mr. Nice Guy. Just think what selling, say, $10 billion of China's $1.3 trillion stash (less than 1%) would do to panicky world financial markets at this point in time. Note to China: you--not the debt-addled United States--are the boss of the global political economy. It's time you acted like it if you're serious about not being pushed around. Anyway, from the China Daily:
A senior Chinese trade official said on Thursday that the recent anti-dumping and anti-subsidy investigations launched by the United States against Chinese goods violate rules of the World Trade Organization (WTO).

Addressing a press conference held by the State Council Information Office, Gao Hucheng, vice minister of commerce, said the US investigations and the measures that it might take against Chinese goods will lead to double taxation, which is banned by the WTO.

The US has launched five separate investigations into Chinese products, including art paper, steel pipe and tyres, since last November.

China has been the fastest growing export destination of the United States for five consecutive years, Chinese Vice Minister of Commerce Gao Hucheng said Thursday.

China is expected to overtake Japan as the third largest export market of the United States at the end of this year or early next year, he said.

China's foreign trade value reached US$1.17 trillion in the first seven months of 2007, a year-on-year increase of 24.4 percent, according to customs sources.

The European Union remained its largest partner with a trade value of US$190.1 billion, a growth of 28.5 percent over the same period of last year, followed by the United States with 167 billion dollars, up 17.5 percent, and Japan with US$130 billion, up 15.2 percent.

Agence France Presse also has a related story.