China slams US tire tariffs, threatens retaliationBeijing said Saturday a US decision to slap steep tariffs on imported Chinese tires was "protectionist pro·tec·tion·ism
The advocacy, system, or theory of protecting domestic producers by impeding or limiting, as by tariffs or quotas, the importation of foreign goods and services. " and threatened retaliation RETALIATION. The act by which a nation or individual treats another in the same manner that the latter has treated them. For example, if a nation should lay a very heavy tariff on American goods, the United States would be justified in return in laying heavy duties on the manufactures and in China's first trade spat with the Obama administration.
"China is firmly opposed to this measure of serious commercial protectionism protectionism
Policy of protecting domestic industries against foreign competition by means of tariffs, subsidies, import quotas, or other handicaps placed on imports. by the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. ," commerce ministry spokesman Yao Jian said in statements posted on the ministry's website.
The move "not only violates world trade rules but also the undertakings given by the US at the G20," he said.
"In the context of the global economic crisis this sets a very bad example. China reserves the right to retaliate."
The comments come after the White House announced punitive duties of an additional 35 percent on Chinese-made tires just weeks before President Barack Obama is due to host his Chinese counterpart Hu Jintao Hu Jintao (h` jĭn`tou`), 1942–, Chinese political leader, b. Jixi, Anhui prov. A hydroelectric engineering graduate (1965) of Qinghua Univ. at the G20 summit in November.
Obama signed a determination to apply an increased duty to all imports of passenger vehicle and light truck tires from China for a period of three years, the Years, The
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See : Time White House said in a statement on Friday.
The decision was taken "in order to remedy a market disruption Market Disruption
A situation where markets cease to function in a regular manner, typically characterized by rapid and large market declines. Market disruptions can result from both physical threats to the stock exchange or a unusual trading (as in a crash). caused by a surge in tire imports," the statement said.
China's commerce ministry said the measure was not in the interests of either China or the United States.
It was "a bad signal to send to the world before the G20 (in the United States), which could set off a chain reaction of protectionist measures likely to slow down the global economic recovery," it added in a statement.
Obama had been under pressure domestically to curb rocketing imports of Chinese goods that critics suggest have cost more than 5,000 jobs in the United States.
The government-run US International Trade Commission (USITC USITC United States International Trade Commission (US Federal agency) ) had urged duties of up to 55 percent after union leaders claimed cheap Chinese tires had tripled over the last five years.
However, in a move aimed at minimising Chinese anger, Obama opted for a lower figure, whereby tariffs -- already at four percent -- will soar by an additional 35 percent in the first year, 30 percent in the second and 25 percent in the third.
Chinese ire was piqued earlier in the week when the US imposed tariffs on pipes used in the petroleum industry.
During a meeting Thursday with Wu Banguo, president of the Chinese parliament, Obama stressed the importance of relations between the two nations, according to according to
1. As stated or indicated by; on the authority of: according to historians.
2. In keeping with: according to instructions.
3. a statement released by the White House.
And last month Beijing appealed to Washington to reject punitive tariff proposals to protect the developing relationship between the two capitals.
The United States has long grappled with a ballooning trade deficit with China amid allegations that Beijing has been manipulating its currency to make its exports more competitive.
Obama entered the White House in January after campaigning for a robust trade policy with China.
His administration has prodded Beijing, now the third-largest buyer of US exports, to act swiftly on market reforms, saying American producers needed enhanced market access now to save and create jobs at home.
The US ambassador to Beijing announced last month that Obama would make his first presidential visit to China in the middle of November.