Friday, December 31, 2010
After the US won its intellectual property case involving music against China in WTO, the American government has agonized whether to impose special 421 safeguards against Chinese tires. In a politically sparked debate, Obama faced a dilemma based upon promises made to unions during his campaign for the presidency. As a result of these promises, despite large scale opposition, on 11 September 2009, the White House imposed special protectionist tariffs on tire imports from China. China has started its campaign of retaliation. An antidumping and countervailing case was brought against American chicken parts. Last week China announced new antidumping/countervailing duties cases against U.S. automobiles. Can Obama solve the "trade war" with China when he is going to be Beijing?