WTO rules against China for first time

WTO rules against China for first time

news.yahoo.com

In the sweeping decision, the three-member WTO panel found against China on nearly every point of contention with the U.S., the 27-nation EU and Canada. The panel found that Chinese measures "accord imported auto parts less favorable treatment than like domestic auto parts" or "subject imported auto parts to an internal charge in excess of that applied to like domestic auto parts."

The three trade powers argued that the tariff was discouraging automakers from using imported car parts for the vehicles they assemble in China. As a result, car parts companies had an incentive to shift production to China, costing Americans, Canadians and Europeans their jobs, they said.

(visit the link for the full news article)



[edit on 13-2-2008 by DimensionalDetective]

This could potentially be a much needed boost for our economy in terms of the auto industries. We have been getting our arses handed to us by China in the auto industry.

news.yahoo.com
(visit the link for the full news article)

Even if China does comply I don't see it being more then a drop in the bucket for them monitarily. The WTO ruling is still a big deal though I do think.

China could just do what the US does with WTO rulings... (or any other international tribunal for that matter i.e. NAFTA)... ignore it.
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Originally posted by DimensionalDetective
... We have been getting our arses handed to us by China in the auto industry.

So you favour protectionism?

What about all that stuff about "free markets"?
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reply to post by Gools


China's currency is not tied to the global market and is thus kept unrealisticly low. That could be called protectionism also.

reply to post by RedGolem


Ahh... I see.
They do it so why can't we?

Something is wrong with that argument but I can't quite put my finger on it.
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reply to post by Gools


Not saying they do it so why cant we. Am saying if there currency was liked to the world market there would most likely be less request for rulings or ruling being made from the WTO.
Or if we did artificially control the value of the dollar the economy would probably be better off then it is.

reply to post by RedGolem


Just playing devil's advocate.

BTW if you think the US dollar isn't "artificially manipulated" I got news for you...

To get back to the topic:

As a result, car parts companies had an incentive to shift production to China, costing Americans, Canadians and Europeans their jobs, they said.

I doubt that was a big factor. It's more likely that labour costs were the prime reason for moving production to China.

This is just a means of trying to "blame China" for our economic situation and garner patriotic anti-China support in the general population. IMO of course.
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[edit on 2/13/2008 by Gools]