China imposes tariff on chicken

China imposes tariff on chicken

finance.yahoo.com

NEW YORK (AP) -- Shares of the nation's chicken producers could tumble on Monday after China said it will slap a hefty tariff on U.S. chicken imports to combat what it says are unfairly low prices.

The Chinese government said Sunday that its investigation found that U.S. chicken products are being sold at low prices which undermine the local market. New import duties ranging from 50.3 percent to as much as 105.4 percent will take effect Monday and last for five years.

China was the largest importer of U.S. chicken in 2009 at $752.5 million but has been embroiled for months over duties i

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You've got to admit that the leaders in China have got big gonads. Moreso that their counterparts that lead the United States.

"Unfair low prices?"

I don't know about anyone else hear but chicken in my supermarket costs about as much as beef.

"Undermining their local market?"

Maybe the Chinese officials need to come to the states and visit Wal-mart and see how their products have put our local small business OUT of business in favor for the "glorious" SuperWal-mart.

Maybe we shouldn't send China anything and vice versa.


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

Originally posted by Intelearthling


You've got to admit that the leaders in China have got big gonads. Moreso that their counterparts that lead the United States.

"Unfair low prices?"

I don't know about anyone else hear but chicken in my supermarket costs about as much as beef.

"Undermining their local market?"

Maybe the Chinese officials need to come to the states and visit Wal-mart and see how their products have put our local small business OUT of business in favor for the "glorious" SuperWal-mart.

Maybe we shouldn't send China anything and vice versa.


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

This isn't an attack, this is a counterattack.

China has been imposing a chicken tariff since 2009

It was a reponse to the Tire Tariffs placed by the USA against China

www.nytimes.com...

China Moves to Retaliate Against U.S. Tire Tariff

HONG KONG — China unexpectedly increased pressure Sunday on the United States in a widening trade dispute, taking the first steps toward imposing tariffs on American exports of automotive products and chicken meat in retaliation for President Obama’s decision late Friday to levy tariffs on tires from China.

The Chinese government’s strong countermove followed a weekend of nationalistic vitriol against the United States on Chinese Web sites in response to the tire tariff. “The U.S. is shameless!” said one posting, while another called on the Chinese government to sell all of its huge holdings of Treasury bonds.

The impact of the dispute extends well beyond tires, chickens and cars. Both governments are facing domestic pressure to take a tougher stand against the other on economic issues. But the trade battle increases political tensions between the two nations even as they try to work together to revive the global economy and combat mutual security threats, like the nuclear ambitions of Iran and North Korea.

Mr. Obama’s decision to impose a tariff of up to 35 percent on Chinese tires is a signal that he plans to deliver on his promise to labor unions that he would more strictly enforce trade laws, especially against China, which has become the world’s factory while the United States has lost millions of manufacturing jobs. The trade deficit with China was a record $268 billion in 2008.

China had initially issued a fairly formulaic criticism of the tire dispute Saturday. But rising nationalism in China is making it harder for Chinese officials to gloss over American criticism.

“All kinds of policymaking, not just trade policy, is increasingly reactive to Internet opinion,” said Victor Shih, a Northwestern University specialist in economic policy formulation.

Eswar Prasad, a former China division chief at the International Monetary Fund, said that rising trade tensions between the United States and China could become hard to control. They could cloud the Group of 20 meeting of leaders of industrialized and fast-growing emerging nations in Pittsburgh on Sept. 24 and 25, and perhaps affect Mr. Obama’s visit to Beijing in November.

“This spat about tires and chickens could turn ugly very quickly,” Mr. Prasad said.

China exported $1.3 billion in tires to the United States in the first seven months of 2009, while the United States shipped about $800 million in automotive products and $376 million in chicken meat to China, according to data from Global Trade Information Services in Columbia, S.C.

For many years, American politicians have been able to take credit domestically for standing up to China by taking largely symbolic measures against Chinese exports in narrowly defined categories. In the last five years, the Commerce Department has restricted Chinese imports of goods as diverse as bras and oil well equipment.

For the most part, Chinese officials have grumbled but done little, preferring to preserve a trade relationship in which the United States buys $4.46 worth of Chinese goods for every $1 worth of American goods sold to China.

Now, the delicate equilibrium is being disturbed.

China’s commerce ministry announced Sunday that it would investigate “certain imported automotive products and certain imported chicken meat products originating from the United States” to determine if they were being subsidized or “dumped” below cost in the Chinese market. A finding of subsidies or dumping would allow China to impose tariffs on these imports.

The ministry did not mention the tire dispute in its announcement, portraying the investigations as “based on the laws of our country and on World Trade Organization rules.”

But the timing of the announcement — on a weekend and just after the tire decision in Washington — sent an unmistakable message of retaliation. The official Xinhua news agency Web site prominently linked its reports on the tire dispute and the Chinese investigations.

The commerce ministry statement, posted on its Web site, also hinted obliquely at the harm that a trade war could do while Western nations and Japan struggle to emerge from a severe economic downturn. “China is willing to continue efforts with various countries to make sure that the world economy recovers as quickly as possible,” the statement said.

The Chinese government sometimes organizes blog postings to defend its own policies. But some postings on the tire decision have been implicitly critical of the Chinese government, making it unlikely that they are part of an orchestrated effort.

“Why did our government purchase so much U.S. government debt?” said one posting signed by a “Group of Angry Youths.” It continued, “We should get rid of all such U.S. investments.”

China has accumulated $2 trillion in foreign reserves, mostly in Treasury bonds and other dollar-denominated assets, and held down the value of its currency, which has kept Chinese goods quite inexpensive in foreign markets. China’s exports have soared — China surpassed Germany in the first half of this year as the world’s largest exporter — while China’s imports have lagged, except for commodities like iron ore and oil that China lacks.

Worries that China might sell Treasury bonds — or even slow down its purchases of them — have been a concern for the Bush and Obama administrations as they have tried to figure out how to address China’s trade and currency policies.

At the same time, the Chinese economy relies heavily on exports to the United States, while the American economy is much less dependent on exports in the other direction. Exports to the United States, at 6 percent of China’s entire economic output, account for 13 times as large a share of the Chinese economy as exports to China represent for the United States economy.

Carol J. Guthrie, a spokeswoman for the Office of the United States trade representative, said that the United States wanted to avoid disputes with China and continue talks, but would look at any Chinese trade decisions for whether they comply with W.T.O. rules.

Products involved in trade disputes between the United States and China together make up only a minuscule sliver of the two countries’ trade relationship.

The bigger risk for China, economists and corporate executives have periodically warned, is that trade frictions could cause multinationals to rethink their heavy reliance on Chinese factories in their supply chains. The Chinese targeting of autos and chickens affects two industries that may have the political muscle in the United States to dissuade the Obama administration from aggressively challenging China’s policies.

General Motors sees much of its growth coming from its China subsidiary, the second-largest auto company in China after Volkswagen. And the farm lobby in the United States has long pressed for maximum access to a market of 1.3 billion mouths.

But spotlighting automotive trade may be risky for China. G.M. and Ford both rely mostly on local production to supply the Chinese market, while China is rapidly increasing auto parts shipments to the United States.

reply to post by Returners


I'm glad you cleared this up. Still yet, China can flood our market with cheap and unreliable crap and make our economy crumble but they want to tax our food exports.

I say starve Chinaman starve. BTW, I can't be angry with the Chinese. I'm more disturbed with Americans who insist on buying foreign products at the expense of the American workers. It's not all corporate. It's all about demand. If Americans were to demand US made products by not buying producats made overseas, then they'll wake up when their profit margin fall below their expectations.

Originally posted by Intelearthling
reply to post by Returners

 

I'm glad you cleared this up. Still yet, China can flood our market with cheap and unreliable crap and make our economy crumble but they want to tax our food exports.

I say starve Chinaman starve. BTW, I can't be angry with the Chinese. I'm more disturbed with Americans who insist on buying foreign products at the expense of the American workers. It's not all corporate. It's all about demand. If Americans were to demand US made products by not buying producats made overseas, then they'll wake up when their profit margin fall below their expectations.

The tire tariffs against China have been going on for a year now, and most independent reviews of the situation have deemed it as a failure

www.reuters.com...

The jobs did not return, other countries like Brazil and India simply replaced China as the tire importer.

So what was the result of the Tire tariff? Chinese jobs were lost, American consumers paid the price by having to pay more, India and Brazil benefited by gaining jobs that were lost by the chinese. The chinese struck back by destroying American jobs with the Chicken tariff and chinese consumers paid the price by having to pay more for chicken.

"USCBC has found no evidence that the tariffs on low-end Chinese tires have had a positive effect on American jobs, and we suspect the tariffs have had a negative overall impact on American consumers," the group's president John Frisbie said in a letter asking Obama to order a U.S. government study on the economic effects of the tariffs. "U.S. imports of the low-end tires involved in the case are up substantially, but have shifted from China to other suppliers," the business group said in a separate policy brief examining the decision Obama made one year ago.

Tariffs are not going to save the USA economy, neither will forcing Americans to buy Only American.

The USSR collapsed because thats basically what they did, every soviet citizen could only buy products manufactured by the USSR. As a result the industries of the USSR had a guaranteed profit and thus had no incentive to make their products better. Whether the car company makes a better car or a terrible car they are still going to get 50 million sales.

If you force Americans to buy only American I can guarantee you that the same thing will happen.

I suspect that the real reason the economy is crashing is because of this

www.businessinsider.com...

The truth is that living on credit for decades has caught up with us as a nation. Americans are absolutely drowning in mortgage debt, car loans, credit card debt and student loan debt. As wages have stagnated, credit has enabled many of us to pursue the American Dream and to live far beyond our means, but that doesn't last forever. Now tens of millions of Americans are completely and totally tapped out. But without the return of the voracious American "consumer" there is not going to be a full economic "recovery".

For decades, the American consumer has always returned with a vengeance. Continually expanding debt loads have fueled a level of prosperity that most of humanity only dreams of. But unfortunately, no debt bubble lasts forever.

Now the consumer debt bubble in America has started to pop, and many are wondering what is going to fuel the U.S. economy if American consumers are unwilling or unable to do it any longer.

reply to post by Returners


Really interesting points. I'm not an economist but I was brought up on the superior quality that was present in American made goods. It's a shame that quality has been replace by the "all-mighty" dollar. I cana't say that I've never bought a Chinese made product. I'd only be lying. I needed a cell phone at on time and I'm still using it 5 years later.

I'm also not saying that Americans should be forced to by American made products. I feel like that if Americans want foreign made goods, they should have to pay a "luxury" tax on it and see if they want it then.

Originally posted by Returners

www.businessinsider.com...

The truth is that living on credit for decades has caught up with us as a nation. Americans are absolutely drowning in mortgage debt, car loans, credit card debt and student loan debt. As wages have stagnated, credit has enabled many of us to pursue the American Dream and to live far beyond our means, but that doesn't last forever. Now tens of millions of Americans are completely and totally tapped out. But without the return of the voracious American "consumer" there is not going to be a full economic "recovery".

For decades, the American consumer has always returned with a vengeance. Continually expanding debt loads have fueled a level of prosperity that most of humanity only dreams of. But unfortunately, no debt bubble lasts forever.

Now the consumer debt bubble in America has started to pop, and many are wondering what is going to fuel the U.S. economy if American consumers are unwilling or unable to do it any longer.

That was the plan - to indenture the population.

1. The Bush government tightened the laws for personal bankruptcy, basically preventing it.
2. Then, deregulated the banks.
3. Aggressively marketed consumer credit.
4. Pulled the plug.

Now, most Americans carry a HUGE burden of personal and public debt.

That was the plan.

An old favorite...

"I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."

Usually credited to Thomas Jefferson 3rd president of the US (1743-1826), Letter to the Secretary of the Treasury Albert Gallatin (1802)

reply to post by soficrow


The USA government shoulders some of the blame, but surely the American consumer shares part of it.

Nobody forced the american consumer to take out a mortage that they couldn't afford, nobody forced the American consumer to live on credit cards. Every year savings have continued to drop and personal debt was beginning to rise.

reply to post by Returners

The USA government shoulders some of the blame, but surely the American consumer shares part of it.

I cannot discuss according to your terms. Yours, revised, to reflect my values:

Americans are not consumers, they are CITIZENS and PEOPLE.

America is not a "market," it is a NATION.

Nobody forced the american consumer to take out a mortage that they couldn't afford, nobody forced the American consumer to live on credit cards. Every year savings have continued to drop and personal debt was beginning to rise.

It was an aggressive marketing scam - another camouflaged Ponzi scheme. Brought to you courtesy of the same crowd that says, "America is not a democracy, it's a republic," and that's now pushing "Producerism" as a moral-political value in the middle of a depression in a country that outsources all its production.

Mind games. Not even funny any more.