The start of protectionism?

dandy-candy

I remember about a year back people were discussing protectionism and how bad it can be in an economic crisis, so I was surprised to read this today http://news.bbc.co.uk/1/hi/business/8500016.stm about the US and China. Could this be the start of more troubles, and will other countries follow suit do you think?

Radiantsoul

No.
It is a bit of political nonsense, but sides really need to trade with the other.

Masomnia

It's just another case of China wanting to be an international player, but not being prepared to act like one.

That's how the free market works; Americans don't want the chicken feet, so they export them to China, who do. Now if China can find a niche in the market and export its surplus then it'll do well and everyone benefits. Instead they mass produce tat by mistreating workers to undercut the developed world. They're no better.

1984ReturnsForReal_2

China is a little annoyed with the US at the moment..

Kohoutek

dandy-candy wrote: »

I remember about a year back people were discussing protectionism and how bad it can be in an economic crisis, so I was surprised to read this today http://news.bbc.co.uk/1/hi/business/8500016.stm about the US and China. Could this be the start of more troubles, and will other countries follow suit do you think?

The reason the Chinese have done this is revenge for the US decision to sell several billion of dollars worth of weapons to Taiwan, China's biggest enemy. The Taiwanese state is basically the descendants of the losing side in the Chinese Civil War. They call themselves the 'Republic of China'. Obviously the Communist regime in the People's Republic of China hate them.

For years, America has had an implicit understanding with China not to meddle in its affairs with Taiwan - they just broke it spectacularly.

1984ReturnsForReal_2

Kohoutek wrote: »

For years, America has had an implicit understanding with China not to meddle in its affairs with Taiwan - they just broke it spectacularly.

It didn't really help matters did it.

That & the fact the US wants China to devalue & release some of its $3 trillion stock pile...

fc123

China is to enforce anti-dumping duties on US chicken imports, accusing American poultry firms of exporting the meat at unfairly low prices. In just the latest in a series of trade disputes between the two countries, China's Commerce Department said the tariffs will start from 13 February.
China launched an investigation into US chicken in September, a day after the US put tariffs on Chinese tyres.
President Obama said this week he would get "much tougher" with China on trade.

It's all a bit pot and kettle.

Generali

fc123 wrote: »

It's all a bit pot and kettle.

That's the problem with trade wars, they get very 'tit for tat' very quickly.

The US has been putting huge tarriffs on Chinese pre-formed steel products (things like pipes and mesh) and there have been mutterings of placing other tarriffs on imports. The trouble is, whilst protectionism is a really dumb policy it is a very seductive message.