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An Eye for an Eye against the US Sanction  

2009-12-12 11:07:18|  分类: 默认分类 |  标签: |举报 |字号 订阅

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By Xinhua net on November 25

According to the final arbitration by the US Trade Commission on 24th, the oil pipes from China will be posed on the sanction of countervailing duty at the rate of 10.36% to 15.78%, resulting from the subsidy received by Chinese oil pipes. As the top sanction by US so far, the total amount of capital involved in this case is going to be as much as $ 2.7 billion. It is learnt that 37 Chinese oil pipe manufacturers will also be posed on anti-dumping duty rating from 36.53% to 99.14%, according to the preliminary arbitration by the US Trade Commission.

Chinese products are frequently posed on “trade remedy measures” by Obama administration due to the decline of the US economy, the rising of trade protectionism as well as the manipulation of certain politicians, etc., “China-made” has been becoming the most remarkable victim of the US protectionism.

It was few days after his visit to China that Obama brewed and carried out the most prominent sanction ever to China, considering the domestic political factors, which is against the WTO free trade agreement and the commitment by Obama on the establishment of free market.

It is not acceptable by the Chinese government and the people that Obama administration turns against its attitude. Extreme indignation will be aroused among Chinese people owing to the vicious treatment to our products by Uncle Sam!

Although it is the consensus of the international community that trade protectionism shall be contained, the risk of US protectionism kept rising since the year of 2009. Earlier this year, the Economy Stimulation Act, adopted by US congress with nearly $800 billion, still contained the controversial term Buy American Act, BAA, which stipulates that all iron products used in the Economy Stimulation project must be US-made.

      We note that Buy American Act, BAA as well as Smoot-Hawley Tariff Act were adopted by the U.S. Government in 1929-1933, during the Great Depression when the United States raised import tariffs on a large scale. The intention of these two provisions is to protect the U.S. domestic economy from the impact of imports and create more unemployment. However, from 1929 to 1933, although the US imports from Europe fell 71%, the export to Europe declined by 67% due to massive sanction against the United States by the rest of the world. As a result, US unemployment rate continuously increased to 25.1% in 1933 from 7.8% when Smoot-Hawley tariff was passed in 1930 .Affected by trade protectionism by US, the world trade has declined by two-thirds in the four year. Although international trade occupied a small proportion in the national economies at that time, many economists still believe that the collapse of the global economy caused by US trade protectionism was one of the important triggers for the Great Depression during the period of 1929-1933.

With the economic globalization and the regional economic integration, the U.S. has become one of China's most important trading partners. In recent years, owing to the impact of financial crisis and the de-leveraging of the U.S. Consumers, the share of Chinese exports to the U.S. fell to 17.7% in 2008 from 19.1% in 2007, but it is still second to the European Union, as China's second largest export destination. If the U.S. trade protectionist forces are not effectively contained, it is bound to bring greater uncertainty and challenge to the ability of China’s external demand.

At present, China is in the period of rapid economic development, with top dependence on external demand, which only Germany and South Korea can compete with. In the emerging market economy, China is the first country to encounter the huge attack of U.S. trade protectionist forces. It is self-evident that under joint efforts of countries in the world, global trade protectionism may be effectively curbed. However, in view of the painful experience of U.S. trade protectionism, we believe that the US sanctions against Chinese products are likely to escalate again.

In face of the repeated sanctions of US, Chinese Government and people must make strong and effective counterattacks, so that the Obama administration could be aware that US will be suffered from even greater losses due to the special safeguard measures, including impairing Obama's political prestige and the domestic political interests. Only in this way could the Obama administration be forced to take more consideration to China's interests. At present, according to feedbacks of China's Ministry of Commerce regarding “Tire special treatment,” the special safeguard measures adopted by Obama administration may be supported by a part of trade union organizations and some workers. However, if China adopts anti-dumping and anti-subsidy measures against US, Obama will lose the support of a part of workers, which clearly informs Obama that special safeguard measures do not make sense and are not beneficial to United States.

Therefore, we must resolutely oppose the U.S. trade protectionism, resolutely crack down on the United States by adopting a tougher attitude and measures reasonably, evidentially and properly, such as the strengthening of patriotic education, fighting back the U.S. with WTO principles and boycotting American products, etc. Only in this way can we smash the Obama administration and American people with Trade Sanction Stick that always be used by US who will pay for its wrong decision and measures painfully.

Let the Obama administration and the Americans come to taste the bitter fruits of their trade sanctions against China!

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