Chinese Minister Visits U.S. to Lobby Against Tire Tariffs
International Desk
August 19, 2009
China's tire manufacturers should have played safe and fair, says AAM Senior Analyst.
Washington, DC - After a recent finding by the U.S. International Trade Commission that Chinese tire manufacturers used illegal trade practices to flood the U.S. with substandard tires, Zhong Shan, China's Vice Chairman of Commerce, is in Washington this week to lobby against tariffs on Chinese tires.
As a result of its finding, the ITC had recommended tariffs on Chinese tires at 55%, 45% and 35% respectively over the next three years. President Obama has until September 17th to accept or reject the ITC's recommendations.
Vice Chairman Zhong plans to meet with the Department of State, the U.S. Trade Representative, and the Treasury and Commerce Departments during his visit.
"More than 5.3 million U.S. manufacturing jobs have been lost since 2000-- 5,100 in domestic tire manufacturing alone," says AAM Senior Analyst Kerri Toloczko. "Unless the U.S. takes action in this case, another 3,000 tire workers could be laid off before year's end."
Some critics of the ITC ruling claim that U.S. action against cheap and sometimes defective Chinese tires would hurt the economy and cause job loss.
"I'm not sure how manufacturing a product domestically causes domestic job loss," says Toloczko. "And its not just about the numbers. Deaths and injuries have occurred here because Chinese manufacturers purposely omitted a gum strip that keeps treads together simply because it saved money."
Toloczko continued, "It is news to no one that China used illegal government subsidies and ignored agreed-upon environmental and labor standards to get a leg up on American tire manufacturers. But what is not usual-- and what has sent Zhong Shan on his whirlwind tour of Washington-- is that the U.S. is finally taking steps to do something about it."
Toloczko add that the tire tariffs debate is also a compelling political story.
"In the 2008 campaign, candidate Obama promised he would take steps to provide American manufacturers with a level playing field against China's economic cheating. In April at the G20 summit, he agreed with other members not to restrict trade before 2011."
Toloczko notes that the G20 meets again the week after President Obama makes a decision on the ITC recommendations. She adds, "This is not lost on the White House, and ultimately, the President is going to have to pick a team."
Ms. Toloczko is a nationally recognized conservative commentator and served as a Republican appointee to the U.S.-China Economic and Security Review Commission.
Washington, DC - After a recent finding by the U.S. International Trade Commission that Chinese tire manufacturers used illegal trade practices to flood the U.S. with substandard tires, Zhong Shan, China's Vice Chairman of Commerce, is in Washington this week to lobby against tariffs on Chinese tires.
As a result of its finding, the ITC had recommended tariffs on Chinese tires at 55%, 45% and 35% respectively over the next three years. President Obama has until September 17th to accept or reject the ITC's recommendations.
Vice Chairman Zhong plans to meet with the Department of State, the U.S. Trade Representative, and the Treasury and Commerce Departments during his visit.
"More than 5.3 million U.S. manufacturing jobs have been lost since 2000-- 5,100 in domestic tire manufacturing alone," says AAM Senior Analyst Kerri Toloczko. "Unless the U.S. takes action in this case, another 3,000 tire workers could be laid off before year's end."
Some critics of the ITC ruling claim that U.S. action against cheap and sometimes defective Chinese tires would hurt the economy and cause job loss.
"I'm not sure how manufacturing a product domestically causes domestic job loss," says Toloczko. "And its not just about the numbers. Deaths and injuries have occurred here because Chinese manufacturers purposely omitted a gum strip that keeps treads together simply because it saved money."
Toloczko continued, "It is news to no one that China used illegal government subsidies and ignored agreed-upon environmental and labor standards to get a leg up on American tire manufacturers. But what is not usual-- and what has sent Zhong Shan on his whirlwind tour of Washington-- is that the U.S. is finally taking steps to do something about it."
Toloczko add that the tire tariffs debate is also a compelling political story.
"In the 2008 campaign, candidate Obama promised he would take steps to provide American manufacturers with a level playing field against China's economic cheating. In April at the G20 summit, he agreed with other members not to restrict trade before 2011."
Toloczko notes that the G20 meets again the week after President Obama makes a decision on the ITC recommendations. She adds, "This is not lost on the White House, and ultimately, the President is going to have to pick a team."
Ms. Toloczko is a nationally recognized conservative commentator and served as a Republican appointee to the U.S.-China Economic and Security Review Commission.
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