Europe and U.S. Accuse China of Unfair Trade Practices

[Coventina]

Source: New York Times

The United States and European Union accused China of unfair trade practices on Tuesday, saying the Chinese government was restricting exports of raw materials to give manufacturers in that country a competitive advantage.

Ron Kirk, the United States trade representative, said China had imposed quotas, export duties and other costs on raw materials used in the production of steel, chemicals and aluminum. In effect, he said, China was putting its thumb on the scale and giving Chinese manufacturers an unfair edge.

He said that restrictions on exports of bauxite, zinc, yellow phosphorus and other raw goods make it more expensive for manufacturers to produce finished goods and threatened thousands of jobs in industries already rocked by the global recession.

“Trade has to be fair,” Mr. Kirk said in a news conference in Washington. “If you’re going to do business with the United States, you’re going to have to play by the rules.”



Read more: http://www.nytimes.com/2009/06/24/business/global/24tra...

[Romulox]

1. Now we're fighting to be an exporter of RAW MATERIALs to China? LOL.

Welcome to the 3rd world!

[dipsydoodle]

3. From China

....not to China. Unless I've misread the article.

[Romulox]

4. You are correct. I misread the article.

[dipsydoodle]

5. Even so I still don't understand this

Australia for example, according to wiki, has got far more bauxite than China so why not buy it from there ?

What on earth is the issue here ?

[Romulox]

6. Quick guess: allowing a subsidized domestic market for raw materials gives Chinese manufacturers

a significant cost advantage; the theory is likely that allowing Chinese raw materials to sell at market prices will drive up costs for Chinese manufacturers, who will be competing with foreign buyers on a more level playing field.

[dipsydoodle]

2. delete - posted in wrong place

.

[Pharlo]

7. If the US and EU feel this gives the Chinese an unfair production

advantage, just retaliate with tariffs on Chinese goods entering the US and the EU.

Call it a 'Fair Trade Act Tariff'