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People's Daily Online>>Opinion

Protectionism cannot save U.S. auto industry

By Zhong Sheng (People's Daily)

16:16, March 20, 2012

Edited and Translated by People's Daily Online

Last weekend, nearly 200 members of the U.S. congress sent a letter to President Barack Obama, accusing that China's auto parts policies have resulted in an "unfair competitive advantage".

They also demanded the U.S. government to protect the U.S. auto industry and job opportunities with existing laws. They asked the newly established cross-sectoral trade law enforcement agency to take China's auto parts as the main attack targets.

The U.S. government has recently been working well with the Congress on trade issues with China. They first established the cross-sectoral trade law enforcement agency dealing with emerging economies like China and then modified the countervailing duty law in order to levy punitive taxes on China and other countries.

These actions showed America's fretfulness amid its sluggish economy in the electoral year. Most of the 200 Congress members are from the Democratic Party and are related to the U.S. auto industry. In the eyes of some U.S. politicians, it is nothing but a political show to attribute the high unemployment rate and other economic problems to China.

After coming into power, the Obama administration had injected massive funds into the auto industry at the brink of bankruptcy. The U.S. auto industry has come to a crucial moment of reforming to survive. The only wise way is to improve the competitiveness through reform. What the successful U.S. companies around the world rely on is strong competitiveness. Therefore, trade protectionism cannot save the U.S. auto industry.

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Leave your comment6 comments

  1. Name

McKechnie at 2012-03-2964.231.163.*
The US auto industry is doing just fine now. We can"t say the same about the Chinese auto industry. Its just pathetic!
Jack Smith, USA at 2012-03-2324.26.135.*
Yet another example of spoiled American brats resenting the fact that others in this world have a right to make a living too. U.S. automakers went bankrupt because they arrogantly refused to provide their customers with good cars. This arrogance was then compounded when they demanded a bailout from the same taxpayers they ignored in the marketplace. The fact is that Americans are much better off because Asians have made their products cheap and plentiful; a fact which too many spoiled American brats have taken for granted. America does not deserve its prosperity, as it is false and built on the backs of others. There will be a day of reckoning for this. Jack Smith, USA
Todd at 2012-03-22108.37.19.*
It"s global capitalism in action. The U.S. never had any real competition until China came along.
hialeahtom at 2012-03-2165.3.193.*
"nearly 200 members of the U.S. congress sent a letter to President Barack Obama", ????I think they will get better reply if the addressed it to Santa Claus, North Pole.
Jason W. Smith, Ph.D. at 2012-03-2068.97.0.*
China is going to have its hand full juggeling the US panic strickern illogical politics against the US national interest in good relations with China. Apparently you are up to it - I doubt I would be for long.

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