U.S. Sanctions on China's Spare Parts


This group sent a letter to Obama, saying: "We cannot wait for further damage to occur. 75% of the automotive industry's employment comes from auto parts. Nowadays, such employment in US states is in jeopardy." Many of the above-mentioned lawmakers are from the developed Midwest of the automobile manufacturing industry. North of the state, and these areas may play an important role in Obama's re-election in November. According to lawmakers, China has adopted numerous policies to allow domestic auto parts manufacturers to have unfair trade advantages. They said that these policies include China's restrictions on the import of foreign auto parts and subsidies to local auto parts makers, resulting in low prices for parts made in China. The lawmakers said: "These strategies have been effective. China's auto parts exports have grown rapidly and have increased by about 900% since 2000." The proponents said that the Obama administration's choices include bringing lawsuits against the World Trade Organization (WTO), or based on The U.S. trade remedy law took measures to impose taxation or other restrictions on auto parts exported from China to the United States.

Nearly 200 lawmakers in the United States asked the Obama administration to take action on a number of auto parts related policies in China on Friday because they believe that these policies have created an unfair competitive advantage in China's auto parts industry. A total of 188 members of the House of Commons (mostly Democrats) urged the Obama Administration’s trade inspection team to make the Chinese auto parts policy a top priority. In a letter to Obama, these lawmakers stated that they are deeply concerned about the unfair practices in the Chinese automobile industry and hope that the government will use all existing legal powers to retain and protect US industries and job opportunities.

Hua Jie Comments: This week, the United States will impose large punitive tariffs on steel wheels that have been imported from China and that they believe have dumping and subsidies. According to the U.S. Department of Commerce, Chinese manufacturers sell steel wheels at less than fair value and receive government subsidies ranging from 26% to 38% of the value of wheels. The author's first impression was related to the Chinese rare earth purchase case discussed last week. According to the current official excuse given is a subsidy, and then in the United States for competitive sales. The author analyzes this incident by only talking about a few small things from a consumer perspective.

1, killing one thousand self-defeat eight hundred?

I called my domestic friend and talked about the rapid rise in domestic prices. I casually talked about it. Two years ago, the author came to the United States. At that time, I went to compare a famous shopping mall to buy shoes. The price of shoes was about twenty dollars. Including the pair I now wear. After shopping in these places over the past six months, I found that the same shoe price rose to around thirty, and went several times and found no signs of price return.

Talking about this matter, friends and the author arguing two things: First, the low price of the United States, high income and low prices is a contradiction concept, the reason why such immigrants rush to enter the United States, which is one of the important reasons; The author believes that most of the products sold in the United States are not domestic production and processing, so prices do not have any proportional relationship with the income of the people. For example, most of the clothes bought in the United States are made in China. Many times when friends buy gifts abroad and bring them home, there are very few products that are not made in China. Occasionally there are products from countries such as Mexico and Indonesia. Relatively, according to friends' words, the quality of Chinese-made products is better. The same brand of clothes, if made in China, may go home to wear, if you change to Indonesia or Mexico, you may also need to take scissors to deal with some unprocessed clean lines. Therefore, the author believes that the key to low-price, high-income, and high-quality life in the United States lies in the use of unbalanced economic development in the world. This is the cornerstone of its national quality life. Of course, many times, the Chinese people assume the role of cannon fodder. In order to survive, we have to struggle in sweatshops while at the same time giving the United States and other developed countries the ultimate high quality of life.

The second issue is what role China has played in the process of rising prices in the United States. Prices in China have risen. The prime minister personally spoke at a press conference. The reason is not the focus of this article, but the income of the entire people is increasing. The wages in sweatshops in Dongguan, Guangzhou, and Shenzhen have also risen. The result is that the cost of Chinese foundry factories, which are the foundry kingdom, has increased, and this has affected the products that are sold overseas.

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