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    Trade War Between US&China

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    Rosetta Renner
    The document discusses trade conflicts between the US and China from 2003-2010 regarding tires, frozen chicken, and solar panels. It provides statistics on imports and exports between the two countries. Specifically, it describes how the US imposed tariffs on Chinese tires in 2009 due to lost jobs. For solar panels, the US placed unexpected tariffs of up to 2.5% which has resulted in $70 million in duties for importers. China argues the tariffs violate free trade principles while others say they may cause industries to move production elsewhere. The document analyzes the impacts on jobs in both countries.

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    Trade War Between US&China

    Uploaded by

    Rosetta Renner
    98 views21 pages
    The document discusses trade conflicts between the US and China from 2003-2010 regarding tires, frozen chicken, and solar panels. It provides statistics on imports and exports between the two countries. Specifically, it describes how the US imposed tariffs on Chinese tires in 2009 due to lost jobs. For solar panels, the US placed unexpected tariffs of up to 2.5% which has resulted in $70 million in duties for importers. China argues the tariffs violate free trade principles while others say they may cause industries to move production elsewhere. The document analyzes the impacts on jobs in both countries.

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    The document discusses trade conflicts between the US and China from 2003-2010 regarding tires, frozen chicken, and solar panels. It provides statistics on imports and exports between the two countries. Specifically, it describes how the US imposed tariffs on Chinese tires in 2009 due to lost jobs. For solar panels, the US placed unexpected tariffs of up to 2.5% which has resulted in $70 million in duties for importers. China argues the tariffs violate free trade principles while others say they may cause industries to move production elsewhere. The document analyzes the impacts on jobs in both countries.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    98 views21 pages

    Trade War Between US&China

    Uploaded by

    Rosetta Renner
    The document discusses trade conflicts between the US and China from 2003-2010 regarding tires, frozen chicken, and solar panels. It provides statistics on imports and exports between the two countries. Specifically, it describes how the US imposed tariffs on Chinese tires in 2009 due to lost jobs. For solar panels, the US placed unexpected tariffs of up to 2.5% which has resulted in $70 million in duties for importers. China argues the tariffs violate free trade principles while others say they may cause industries to move production elsewhere. The document analyzes the impacts on jobs in both countries.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 21

    Trade war between US&China

    Present

    Chayun Tantivasadakarn

    By

    Chatwich Chatchaiwatkul 5004640149


    Kandanai Chotikapracal 5004640370
    Trade war between US&China

     Recently, there has been a conflict


    between US&China about the tariff rate.
     Tires Trade
     Frozen Chicken
     Solar panel
    Table forecast of US
    2003 2004 2005 2006 2007 2008 2009 2010
    Merchandise Trade
    Exports
    Actual 724.4 818.3 908.4 1032.1 1149.2 1291.3 — —
    Forecasted — — — — — — 1,035.1 1,025.0
    Imports
    Actual 1284.0 1499.5 1705.3 1882.7 1985.2 2,112.5 — —
    Forecasted — — — — — — 1,489.9 1,661.9
    Trade Balance
    Actual -550.9 -669.6 -787.1 -838.3 -819.4 -821.2 — —
    Forecasted — — — — — — -429.9 -581.8
    Tired Trade
    MSNBC.com
    Saturday, September 12,2009

     The President Obama announced to


    impose a tariff on tires from China.
     Since there are 5,000 jobs have been
    lost over the past five years and in
    2006 and 2007, U.S. four tire plant
    closed and three more are closing in
    this year.
    MSNBC.com
    Saturday, September 12,2009

     Obama settled the tires tariff rate at an


    extra 35 percent in the first year, 30
    percent in the second year, and 25
    percent in the third.
     G20 have made a strong statements
    critical of countries that US protect their
    key industries.
    Frozen Chicken
    Solar Panel
    businessweek.com
    Monday, October 12, 2009

     The US customs decision is dividing the


    industry between importers and companies
    that produce solar equipment in the United
    States. And with China accounting for a
    rising share of American imports, the tariff
    could become a sticking point in bilateral
    trade relations already troubled by the
    dispute over tires, autos and chicken parts.
     The United States exported almost as much
    solar panel equipment as it imported in the
    first seven months of this year — $605
    million in imports and $555 million in
    exports, according to Commerce Department
    data.
    businessweek.com
    Monday, October 12, 2009

     Due to President Obama’s announcement of


    35% tariff on automobile tires imported
    from, the sudden decision to place a 2.5%
    tariff on imports is legally binding on most
    solar panels imported into the United
    States. But virtually no one in the industry
    became aware of it until just recently.
    Meanwhile, unpaid duties piled up, along
    with penalties that are likely to double the
    cost.
    businessweek.com
    Monday, October 12, 2009

     companies that import solar panels to the


    United States are facing up to $70 million
    in unexpected tariff. The bill comes at a
    time when the industry is already
    struggling and could hurt both foreign solar
    panel makers and foreign and American
    distributors.
     The US Solar Energy Industries Association
    estimates that by achieving a goal of 12.5
    percent of electricity generation to come
    from solar by 2020, 1.5 million new jobs in
    the solar industry will be created.
    businessweek.com
    Monday, October 12, 2009

     However, many panel manufacturers are


    losing money due to fierce competition
    from ever-expanding production in China
    and a worldwide downturn that has driven
    down prices.
     Raising prices to cover past tariffs will be
    hard because the market is glutted with
    panels; prices have fallen a fifth since early
    this year.
    Analyze
     The state benefits from solar directly
    since most of the money spent goes
    toward the building materials and
    equipment produced and installed by
    Arizona companies thereby staying in
    the State.
     therefore the money will flow inside
    the US.
    Anti-protectionist statement
     Beijing says the duties would be a violation
    of global free-trade principles and has
    complained about U.S. protectionism.
     Roy Littlefield said ‘it would not save
    American jobs but only cause tire
    manufacturers to move production to
    another country with less strict
    environment and safety controls, less active
    unions and lower costs than United States.’
    Politics from impose the tariff
     The tire dispute threatens an
    economic relationship crucial to
    China’s economic growth.
     There would potentially spark a
    dangerous trade war.
     Moreover, China gov’t also could sell
    some of its extensive holdings of U.S.
    Treasury debt.
    Table 2: Top US Exports to China 2008 ($ billion)

    *Percent change over 2007


    Sources: US International Trade Commission, US Department of Commerce, and US Census Bureau

    %
    HS# Commodity Description Volume
    Change*

    85 Electrical machinery & equipment 11.4 6.8

    84 Power generation equipment 9.7 10.0

    12 Oil seeds & oleaginous fruits 7.4 76.2

    88 Air & spacecraft 5.1 -29.0

    39 Plastics & articles thereof 3.8 6.6

    90 Optics & medical equipment 3.7 12.9

    72, 73 Iron & steel 3.3 18.5

    47 Pulp & paperboard 2.3 11.2

    76 Aluminum & articles thereof 2.1 16.6

    29 Organic chemicals 2.1 -0.8


    Table
    Table 3: Top US Imports from China 2008 ($ billion)

    *Percent change over 2007


    Sources: US International Trade Commission, US Department of Commerce, and US Census Bureau

    %
    HS# Commodity Description Volume
    Change*
    85 Electrical machinery & equipment 80.3 4.7
    84 Power generation equipment 65.1 1.7
    95 Toys & games 27.2 4.0
    61, 62 Apparel 24.0 0.1
    94 Furniture 19.4 -4.7
    72, 73 Iron & steel 14.8 24.7
    64 Footwear & parts thereof 14.5 2.4
    39 Plastics & articles thereof 8.9 8.2
    42 Leather & travel goods 7.4 2.1
    87 Vehicles other than railway 6.4 4.9
    Model
    Tire (Labour)
    Solar panel (Capitalist)
    Conclusion
     As the effect of this situation,
    jobs will be more provided for US
    citizens as we conclude by
    analyzing the model
     But as China, jobs will be decline
    as well as causing the excess
    supply in both tires and solar
    panel industries.
    Reference
     http://www.uschina.org/statistics/tradetable.html
     http://www.usitc.gov/tata/hts/
     http://www.nytimes.com/2009/10/01/business/global/01tariff.html?_r=1
     http://www.reuters.com/article/pressRelease/idUS10038+17-Jun-
    2008+BW20080617
     http://www.bharatbook.com/Market-Research-Reports/Research-Report-on-
    Chinese-Tire-Export.html
     http://www.bjreview.com.cn/world/txt/2009-09/22/content_218058.htm
     http://www.msnbc.msn.com/id/32808731/ns/business-world_business/
     http://www.bloomberg.com/apps/news?pid=20601103&sid=aqVCDzPQt8eg
     http://www.washingtonpost.com/wp-
    dyn/content/article/2009/09/11/AR2009091103957.html
     http://www.foxnews.com/politics/2009/09/11/obama-administration-slaps-
    tariffs-chinese-auto-imports/
     http://thehill.com/homenews/news/58383-obama-hits-china-with-tariffs-on-
    tires
    Thank you For YouR Attention

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