Sino-US trade tensions escalate

08:40, September 17, 2010      

Email | Print | Subscribe | Comments | Forum 


The move came amid mounting US criticism of China's exchange rate policies, despite the central parity rate of the yuan rising to 6.7181 per US dollar.(Xinhua Photo)


Trade tensions between the United States and China have worsened in the wake of Washington filing two cases against Beijing at the World Trade Organization (WTO), claiming "unfair trade practices" against China.

The move came amid mounting US criticism of China's exchange rate policies, despite the central parity rate of the yuan rising to 6.7181 per US dollar, a fresh high, according to the China Foreign Exchange Trading System.

The US filings target anti-dumping duties that China imposed on electrical steel from the US, used in the power sector, as well as US suppliers having no access to electronic payment services in China.

"We are concerned that China is breaking its trade commitments to the United States and other WTO partners, both by favoring its one State-owned financial services firm to the exclusion of American credit and debit card companies and by manipulating trade-remedy investigations to unfairly restrict exports of American steel," US Trade Representative Ron Kirk said in a statement, according to Dow Jones.

China imposed countervailing and anti-dumping duties on electrical steel from the US in April as the Ministry of Commerce said export subsidies on American steel hurt China's domestic steel industry.

US credit card companies complained about a lack of access to China's fast-growing market. Visa informed its member financial institutions May to stop using UnionPay as an international payment method from August 1, which was not enforced, reports said.

Consultations are the first step in a WTO dispute. Parties that do not resolve matters through consultations within 60 days may request the establishment of a WTO dispute settlement panel, according to WTO rules.

Michael Pettis, a senior associate specializing in the Chinese economy for the Beijing-based Carnegie Asia Program, told the Global Times.

Thursday that "It is hopeless for the US to force China to raise the yuan, so in order to solve domestic problems, the Obama administration has to put more pressure on bilateral trade to decrease the trade deficit."

"Trade conflicts between the two countries will get more common by next year, as there are no feasible solutions to these conflicts," he said, adding that a trade war might be triggered if the situation worsens.

Wan Jun, a researcher of the global economy at the Chinese Academy of Social Sciences, told the Global Times that "The US is experienced in using trade dispute as a tool while putting pressure on China to win US public support."

The latest trade dispute came at a time when US lawmakers are holding hearings on legislation to encourage China to let its yuan rise in value. Chinese officials have repeatedly said a rising yuan "can't solve domestic US problems such as high unemployment."

Foreign ministry spokeswoman Jiang Yu said Thursday that "appreciation of the yuan won't resolve the US trade deficit with China or domestic US problems such as high unemployment."

By Guo Qiang, Global Times
【1】 【2】

(Editor:梁军)

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Photo taken on Sept. 29, 2011 shows a cargo ship in danger on the sea near Zhuhai City, south China's Guangdong Province. Cargo ship Fangzhou 6 of Qingzhou of southwest China's Guangxi Zhuang Autonomous Region lost control after water stormed into its cabin due to Typhoon Nesat on the sea near Zhuhai Thursday, leaving 12 crew members in danger. Rescuers rushed to the ship and saved them by using a helicopter. (Xinhua)
  • Actress Gong Li poses for L'Officiel Magazine. (Xinhua Photo)
  • Demonstrators from the Occupy Wall Street campaign hold placards as they march in the financial district of New York September 29, 2011. After hundreds of protesters were denied access to some areas outside the New York Stock Exchange on September 17, demonstrators set up a rag-tag camp three blocks away. Zuccotti Park is a campground festooned with placards and anti-Wall Street slogans. The group is adding complaints of excessive police force against protesters and police treatment of ethnic minorities and Muslims to its grievances list, which includes bank bailouts, foreclosures and high unemployment. (Xinhua/Reuters Photo)
  • The romantic myth of the Aegean 
The Aegean Sea is between the Greece Peninsula and Asia Minor Peninsula, dotted with many beautiful scenery islands, like a paradise on earth.  The ancient city of Troy in the east coast of Aegean, Turkey, and Mycenaean sites in the west bank of Greece, which have been archaeological discoveries, now are the must visit places in journey of the Aegean Sea. Above, these desolate dilapidated stone, the sunny blue sky and white clouds and vessels roaming at sea, arriving and departing travellers, add more romantic to the sea and the islands.
  • Chinese Permanent Representative to the United Nations Li Baodong (R) welcomes UN Secretary-General Ban Ki-moon in New York, the United States. Sept. 29, 2011. The Chinese permanent delegation to the UN held a reception on Thursday to celebrate the 62nd anniversary of the founding of the People's Republic of China and the 40th anniversary of China's returning to the UN. (Xinhua/Shen Hong)
  • Chinese ambassador to Bulgaria Guo Yezhou delivers a speech during the reception in Sofia, capital of Bulgaria, on Sept. 29, 2011. The Chinese Embassy in Bulgaria held a grand reception here on Thursday to celebrate the 62nd anniversary of the founding of the People's Republic of China. (Xinhua/Wang Meng)
Hot Forum Discussion