China imposes tariff on US car imports

Discussion in 'China' started by cir, Dec 15, 2011.

  1. cir

    cir Senior Member Senior Member

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    At the end of the day, China's will be a larger, much larger, market than the US is or ever will be。 So Let‘s hit each other with tariffs、barriers and other trade weapons and see who comes out smiling。China is still on the starting block and has got a long way to go whilst the US passed its peak 10 years ago when the double whammy of tech bubble bursting and 9.11 hit Uncle Sam。:sad::namaste:

    Additional duties will be charged on larger-engined American cars with General Motors, Chrysler and BMW all affected

    The Guardian, Thursday 15 December 2011 Article history

    The tension between America and China over international trade escalated on Wednesday when Beijing imposed additional duties on cars imported from the United States.

    China's commerce ministry accused America's car industry of "dumping and subsidising", thereby causing substantial damage to China's domestic car industry. From Thursday, levies will be charged on larger-engined cars from several manufacturers, some being European firms with factories in the US.

    General Motors faces the greatest impact, almost 22% extra on some sports utility vehicles (SUVs) and other cars with engine capacities above 2.5 litres. Chrysler faces a 15% penalty, while a 2% levy will be imposed on BMW, whose US plants make many of the cars it exports to China.

    Existing taxes and duties already push up the cost of US imports by 25%, and the new levies make it even more expensive for Chinese consumers to buy American. The move was swiftly attacked in the US. Carl Levin, the Democratic senator for Michigan (which includes the motor city of Detroit), called it an "unjustified" attempt to circumvent international trade laws. "Instead of ending its unlawful trade practices, China is choosing to take further steps that are unauthorised by world trade rules," he claimed."The livelihoods of American families and the integrity of global trade law are at stake."

    GM says the levies will have little immediate impact, as it mostly exports lower-power cars to China. Analysts, though, said the decision underlined China's determination to protect its car industry.

    "The move shows that China is always capable of intervening politically in its markets," Juergen Pieper of Bankhaus Metzler, the German investment bank, told Bloomberg. Georges Dieng, a Paris-based analyst with Natixis Securities, said the levies had been set to "inflict pain on the Americans, above all". Shares in General Motors fell by over 3%, while BMW's shares slipped 5%.

    China and the US have peppered each other with legal actions and tariffs over the past few years.

    Earlier this month, the US International Trade Commission ruled against China's solar-power industry after an anti-dumping and anti-subsidy investigation. Last week, the US pledged to take China's anti-dumping measures against American poultry imports to the World Trade Organisation.

    Debbie Stabenow, the junior senator for Michigan, urged the US government to take China's car levies to the WTO as well. "China relentlessly breaks international trade rules, and seeks to gain an anti-competitive advantage over our companies and workers. America must be equally relentless in fighting back," she said.
     
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  3. Ray

    Ray The Chairman Defence Professionals Moderator

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    Given the option, one would prefer to go in for the real McCoy than the replicates.
     
  4. civfanatic

    civfanatic Retired Moderator

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    Do people still buy American cars? Japanese brands (and German, if you can afford them) are much better and more cost-efficient.

    I have a Honda from 1993. It has over 200,000 miles on it and still runs fine. If I had a Ford or Chevy from the same era with the same miles it would be in the junkyard by now.
     
  5. Yusuf

    Yusuf GUARDIAN Administrator

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    China depends on exports and it is putting a tarrif barrier on the countries it exports to. Some thinking.
     
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  6. asianobserve

    asianobserve Elite Member Elite Member

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    Ssshh... don't give them ideas.
     
  7. thakur_ritesh

    thakur_ritesh Administrator Administrator

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    hahaha seriously mate, though this is an on going two way fight, going on for sometime now.

    anyways china heavily dumps goods in pakistan which has significantly wiped out their local industry, but the pakistanis wont say a word. some friendship :D
     
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  8. amoy

    amoy Senior Member Senior Member

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    that has to do with consumer psyche. Many Chinese rank German and American auto ahead of JP, SK when it comes to 'face' and 'perception'. Of course personally I feel Japanese cars are top notched, and user friendly esp. for Asians.

    In the context -China and the US have peppered each other with legal actions and tariffs over the past few years. When the US did something in tyre, solar power, China retaliated with anti dumping tariffs on American poultry, agri produces, and now cars. Basically to pull both back to negotiating tables since both are relying on trade. It's not a one-way ticket.

     
  9. asianobserve

    asianobserve Elite Member Elite Member

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    I hope their tit-for-tat becomes a full scale trade war! China should impose tarriff on all US products. And vice-versa. Yahoo!
     
  10. amoy

    amoy Senior Member Senior Member

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    Thats also reciprocal 'deterrence', no full scale war so long as each knows boundary

    Then u can expect lobbying from auto industry or agri states
     
  11. Ray

    Ray The Chairman Defence Professionals Moderator

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    I wonder if Pakistan had any industry worthy of competition, even if the Chinese goods are claimed to be shoddy.

    If China has dumped goods in Pakistan, would it not be a boon to the Pakistanis?

    China is actually smothering Pakistan with love and friendship, so much so, they can't breathe without China giving them the opportunity in between to take a wee bit of air to survive and remember that they are also an independent and sovereign country!
     
  12. Bhadra

    Bhadra Defence Professionals Defence Professionals Senior Member

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    Oh yes, they have Jehadi and Mercinary industry which is better than that of China. Pakistan also runs an Industry called "restrain India" for which West and US paid them billions and now China will make heavy payemnts!
     
  13. thakur_ritesh

    thakur_ritesh Administrator Administrator

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    Sir,

    There was a time back in 50s and 60s during Ayub khan’s dictatorial era when by siding with the west they had western technocrats who had laid down a perfect launching pad for Pakistan to industrially take off, as a matter of fact, it was made sure the technocrats were physically present in Pakistan to monitor, guide, transfer the technology and help in setting up an industrial base and by the time Ayub Khan left, west-Pakistan was considered as one of the most industrialized regions in asia but rather than working on this perfect road map laid out for them, the emphasis of the elites (military, politicians, landlords) right from the time of creation of pakistan remained on getting the “best” and at a good price, which meant they preferred imports to domestic production, which resulted in domestic industry having to suffer right from the onset and this was a habit that was not given up even during Ayub’s era.

    Then with this country biting the dust in ‘71, in came ZAB who was fascinated by jawahar lal Nehru and IG and nationalized everything and his obsession with socialism completely finished off pretty much all that they ever had. Some very good private enterprise were nationalized, the loss was heavy and as happens with nationalization large scale inefficiency, corruption and unproductivity gathered steam and a good industrial base was rendered useless in a matter of years.

    And then the final nail on the coffin came from the chinese but then as you suggest Pakistanis don’t have too much to complain about because at least someone is feeding them, so what if its coming at the cost of local industry being wiped out as a result of dumping by china, a truly all-weather friend.

    A very interesting comparison which shows the effect of socialism and opening up of economy.

    India till 91 had remained a hardened socialist country, Pakistan on the contrary had liberalized itself long back though even after nationalization they remained a fairly open economy.

    In ’92 India’s per capita income was 278usd, pakistan’s 412usd. Average Pakistani earned 48% more than an indian, or an indian earned 33% less than a Pakistani.

    Last year in 2010, India’s per capita income was 1476usd to pakistan’s 1007usd. Last year average Pakistani earned 32% less than an indian or an indian earned 46% more than a Pakistani.

    There has been an absolute 180 degree turnaround, how times change. Paksiatn from a strong base completely lost the initiative.
     

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