Story by Superior Auto Institute / www.nodents.com
Two weeks before President Obama’s visit to Beijing China criticizes Washington over imposing anti-dumping duties on Chinese-made steel pipe and sparks an investigation into the importing of autos, this action has brought much tension to trading.
This allegation has brought many things under fire such as poultry, tires and even Hollywood movies. Beijing and Washington are trying to sort this issue out by constricting the issue to diplomatic channels which is turn hopefully revert a trade war from happening which could damage the global cooperation on issues pertaining to a wide-spread economic disaster.
On Thursday, the United States became criticized by China once a decision was made to raise taxes on China’s pipes as protectionist. U.S. according to the Commerce Ministry violated World Trade Organization commitments and principles to evade protectionist along with the international economic disaster.
A ministry spokesman, Yao Jian reported in a testimony on the ministry's web site that "China resolutely opposes use of such protectionist practices, and will take measures to protect the interests of domestic industry."
A Deputy Commerce Minister Yi Xiaozhun said, “The case was the biggest anti-dumping action yet against China by market value and affected exports worth $3.2 billion a year.”
The U.S. Commerce Department reported that Chinese manufacturers were dumping pipes which are used for oil and gas industries and would impose up to 99 percent.
The investigation into imported U.S. autos came from Chinese automakers who gave no other information to the case. If this alleged case can be proven by Chinese investigators, than U.S. could get higher taxes on U.S. autos. Last month, the U.S. was given a warning that this impending investigation would take place.
When it comes to this case against the U.S. it only stands to reason that if the U.S. has done something wrong, the auto taxes will go up causing car sales price to go up too. So therefore, before that happens auto industries may drop their car prices to keep sales coming in.
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