U.S. Lodges Complaint Against China
By Murad Ali
U.S. manufacturers are sitting on the edge of the seats waiting for the U.S. World Trade Organization complaint lodged against China in the industries of electronics, steel and paper products. The U.S. Trade Representative Complaint states that China gives major subsidies to its manufacturers and discriminates against foreign products. This creates an unfair market where American businesses cannot import their products as easily as China can export.
Susan Schwab, the U.S. Trade Representative says, "That means a range of domestically produced goods in the United States, from steel products to wood products to infotech, are denied an opportunity to compete fairly in the United States and in third country markets.(Rugaber, 2007)"
With all of these subsidies Chinese manufactures are able to sell products so low within the U.S. for less than the cost of the actual raw materials. This creates a true hardship for American manufacturers who have no way of competing once the cost of production is added. If the price and quality of the products were measure the U.S. products would be far superior then the Chinese products.
In the summer the National Electrical Manufacturers Associated, sparked the complaint by writing an important letter to the U.S. Trade Representative citing concerns about low-priced imports. The National Electrical Manufacturers Associate is made up of members like General Electric, Kodak, and Honeywell. These manufacturers are worried about market share loss and declining profits.
Sixty days will be spent in negotiations between the United States and China in order to resolve pending disputes. If the two parties cannot come to an agreement, formal proceedings will happen with the WTO. There is a high likelihood that the talks between the two countries will fail as previous discussion has failed.
The United States has approximately 760 billion dollar trade deficit and is under great economic pressure to make a change. President Bush is receiving more complaints from companies and Congress is starting to raise their silent voices for a transformation of American business strategies. The American people who have been lusting for high-paying jobs are crossing their fingers hoping for a favorable result from the complaint.
About the Author
Murad Ali is a three time published author, a Ph.D. candidate, and a human resource manager. http://www.thenewbusinessworld.blogspot.com
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