Unquestionably, every development based on global trade has some expenses rather than usual costs for both importers and exporters. However, sometimes each of trade partners could be smart enough to impose these expenses to each other which would result in unwillingness for either both sides or just one of them. Refer to China as the biggest commercial partner of most of the countries, it can be understood that Chinese economic development is highly tied with everyone else’s expense. Although it is ideal for China, many countries are dissatisfied due to this situation.
With regards to US as one of the biggest tire importers from China, it could be realized that they have a big share of tire industry in the US which resulted in market disruption as well as high rate of unemployment. Even though the profit margin in auto industry has decreased in US gradually during previous decades because of the company’s price policies and not paying attention to R&D, exceed tire imports from China cause to depressed vehicles sale in the US. Arguably, China also increased the tariffs for chicken feet imported to China. Nevertheless, it seems that this time, this is China that cannot meet chicken feet demand in the internal market.
As it could be seen, every single change in either country’s policy or marketplace condition would cause to the big issue between the countries. Although president Obama’s verdict is paradoxical, it sends the right message to China: Cease and Desist.
No comments:
Post a Comment