The Ministry of Commerce for the People’s Republic of China issued a statement today, 9-14-2009, concerning US and Chinese trade.
China launched anti-dumping and anti-subsidies investigations into some automobile and chicken products originally produced in the United States, the Ministry of Commerce (MOC) announced on Sunday.
The probe follows complaints from Chinese manufacturers. They alleged the above products entered the country’s markets with an “unfair competition manner”, which harmed domestic industries.
The ministry said the investigation was in accordance with the World Trade Organization rules and China’s laws.
The MOC announced, China always firmly opposes protectionism. The country hoped all countries worked together to promote a quick recovery of the world economy.
This statement was issued two days after President Obama announced the increase in tariffs on Chinese-made tires for cars and light trucks. The tariff increase is 35% in the first year, 30% for the second year and then 25% for the third year. President Obama claims that this is to help the US tire industry recover from the Chinese imports that have led to thousands of jobs lost.
In response to the tariff increase, Beijing has called for talks in the WTO to address the tariffs and then today issued the statement that you can read above.
Reading this statement reminded me of a couple of things. First off, we are trading with a one-party Communist state and if we didn’t trade with them they would lose a tremendous amount of power.
Second, in a capitalist society the cheaper product is always going to have a large market share as long as it is somewhat competitive in quality. China has managed to accomplish this with a number of goods. Now, the US can no longer sell their products for a profit because they have to compete with the cheaper goods. So, the US companies move their manufacturing plants to China and then they can make cheap crap too!
Of course this has led and will continue to lead to US job losses. The loss in our manufacturing sector is China’s gain. When Bill Clinton championed the positive aspects of free trade he failed to think from a realist’s perspective. Free trade with China has hurt the US and will continue to do so as long as it has our support.
The last thing that this statement reminded me of is how similar the US and Chinese propaganda machines are. As we move past the eighth anniversary of the September 11th attacks, we should remain vigilant against the enemies that are both foreign and domestic.
Recently, a new Bin Laden address to the American people was made public by a private company called IntelCenter. They have released many of these videos and have refused to divulge their sources. In the new “Bin Laden” statement he addresses the American public and warns them that Obama is powerless, the Bush administration still has control and that American corporations are really the power players behind the wars in Iraq and Afghanistan.
Since the attacks of September 11th America has changed. We are more authoritarian and less democratic. We are more hostile and we co-operate less. The fear has run awash with our liberties and this will continue. Even in the age of Obama we must be aware that it is sometimes those who wish to do the greatest good that end up committing the greatest atrocities.
“The arts of power and its minions are the same in all countries and in all ages. It marks its victim; denounces it; and excites the public odium and the public hatred, to conceal its own abuses and encroachments” (Henry Clay).
“One of the saddest lessons of history is this: If we’ve been bamboozled long enough, we tend to reject any evidence of the bamboozle. The bamboozle has captured us. Once you give a charlatan power over you, you almost never get it back” (Carl Sagan).
“People like to feel they are buying of their own good judgment as a result of the information the salesman has given them” (Paul Parker).
note- this article was originally released on 9-14-2009. I posted it because I think it is still relevant.
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