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China warns protectionist Obama Administration

China isn't happy with the trade policies of the Obama Administration:

China on Friday accused the US of protectionist and biased trade policies less than a week before president Barack Obama’s first visit to Beijing.

In a stinging rebuke to Washington, China’s commerce ministry promised to take measures to protect its domestic industry after the US slapped anti-dumping duties on $2.6bn of Chinese steel pipe imports. The duties are part of a growing roster of trade conflicts between the two countries, despite a high-level meeting last week in China aimed at reducing tensions.

“China resolutely opposes such protectionist practices and will take steps to protect the interests of our domestic industries,” Yao Jian, ministry spokesman, said on its website.

“The US should give objective consideration to the fact that the fundamental problem of the US industries in question is the fall of demand brought about by the financial crisis.”

The Obama Administration's desire to pander to labor interests is going to hurt us in a big way. Trade is necessary to keep prices low and keep an economy robust. History shows that putting restrictions on free trade, on of the most basic economic liberties, will slow an economy as other nations react, just as China is threatening today.

We don't need a trade war. We need free trade.

If you're looking for a good read on this topic, check out Mad About Trade: Why Main Street America should Embrace Globalization by Dan Griswold. I've been reading this book lately and it goes into so much detail as to why we need trade, not only to create better jobs but also because it's good for poor and middle class Americans. Despite all the rhetoric from labor interests, trade has led to an expansion of the middle class and helped them to prosper.

Comments

The Chinese are saber rattling or in this case chop stick rattling before the presidents visit. They do not like it because he has put higher taxes on some of their imports. Free trade is not one of this administrations better qualities.

What, exactly, does free trade have to do with the Chinese method of commerce, which entails artificially devaluing the yuan in order to undercut U.S. products and adding tariffs to U.S. exports to China? If China wants free trade, it should perhaps practice what it preaches.

Exactly. And we should learn the same lesson. They are using the value of the yein to pracitice what they have always done and that is communism. Remember the words of the Chinese are usually filled with another meaning.

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