On August 17, Vice Minister of Commerce Zhong Shan led a delegation to the United States to negotiate and negotiate with the United States on the special case of tire protection, expressing the Chinese government's position and high degree of concern about the anti-special protection measures. In two days, the Ministry of Commerce delegation held talks with the White House Security Committee, the Ministry of Finance, the Office of the Trade Representative, the Ministry of Commerce, and the State Council. In the end, both China and the United States have proposed that they will focus on the overall situation of Sino-U.S. economic and trade relations and resolve conflicts.
Prior to this, as early as August 9, China Rubber Industry Association personally took the lead, Fengshen shares and other domestic six giant tire giants on the "China's special tire insurance program" responded to Washington, and began lobbying in the United States.
Industry insiders pointed out that in fact, it is not the first time to set various trade barriers against Chinese products. However, the reason why the “tire special security case†has caused such a big repercussions in China is that, besides involving huge amounts of goods worth US$1.7 billion, In particular, it is also because, if Obama approves the case, it means that the U.S. government has changed its consistent position in the special security case and will aggravate Sino-US trade friction. What's more important is that the passage of the special safeguard case will put China's many industries under the same threat.
Therefore, China opposes the "tire special protection case" and China must go all out.
Then, in this game, how many "cards" can China have?
China and the United States
“It seems unwise to accept the proposal. This is a test for President Obama. Compared with the time of George W. Bush, China’s current weight is heavier.†Zhou Dawei, a legal scholar at the US and a distinguished researcher at the Institute of Law of the Chinese Academy of Social Sciences, wrote to the Chinese Sankei The "News" reporter pointed out that at present, it is mainly pure economic problems. The final result is related to China's national power and status. China has undergone great changes during these 20 years and has become an important pole of the world economy.
During President Bush’s tenure of office, the United States launched a total of six special safeguard investigations against China and submitted Bush’s ruling four times. All were rejected by Bush after he carefully weighed the pros and cons.
If we say that in previous years, only some economists were shouting and the strength of China’s economic rise could not be ignored, then the outbreak of this round of financial crisis allowed all people to see for themselves the power of China’s economy. Some international media Even assessing China’s economy with “a single talentâ€.
Well, for the United States, which is at the heart of the vortex of the financial crisis today, the support from China is worthy of one of the most powerful straws.
“At the moment, when the United States seeks for us, in all the government’s total of 2.28 trillion U.S. treasury bonds, China has reached 0.82 trillion, accounting for 36%. The newly announced US fiscal deficit is as high as 1.87 trillion, and the United States is now very short of money. We dare not offend China," said Zhou Shizhao, a senior researcher at the Sino-U.S. Relations Research Center at Tsinghua University.
In addition to US Treasury bonds, China’s role in the United States is very important in many aspects, such as the export of American products to China, the support of cheap labor from China to the US manufacturing industry, and so on.
Director Jiang Fei of Beijing First Tire Co., Ltd. (formerly the Beijing Tire Factory) was also relatively optimistic about the case. He told the "China Sankei Shimbun" reporter: "Judged from the experience of the industry, the special security case will not pass. ."
Jiang Fei told reporters that currently US tire companies such as Goodyear and Cooper, as well as some other tire companies that have factories in the United States, have wholly-owned or joint venture plants in China. The products are also exported to the United States. If a special security case is established, American tire companies It will also become a victim, which is why US tire companies have chosen to silence or oppose the special security case. “For example, Dalian Goodyear is a wholly owned US-owned manufacturer, and its products are still exported to the United States. With factories built in China, the labor costs are low, and the products are cost-effective. They are profitable. If the special security case is passed, the products of these enterprises can also escape. Heavy taxes."
Jiang Fei also pointed out that as far as the American people are concerned, the special security case will only increase the burden on the people's consumption and will not be supported.
In fact, Chinese tires occupy only the low-end market in the United States. As Bosworth puts it, "I think the special security case is not good for American companies because if the United States does not import such tires from China, it must import them from another country because the United States does not produce such tires. If the special security case goes through, the United States may have to switch to such countries as Mexico and other countries."
On the one hand, for the United States, there is no essential difference between imports from China and imports from Mexico; on the other hand, compared with other countries, the advantages of Chinese manufacturing are unmatched.
"For a long time, China's manufacturing industry will be invincible in the world." Zhou Dawei pointed out that this is determined by factors such as the size of China's manufacturing industry and cheap labor.
China's card is anti-sanction. This is not a card that cannot be out of necessity. For both China and the United States, this is a result of a double loss.
On the 17th, Yao Jian, the spokesperson of the Ministry of Commerce, responded to the "take countermeasures against trade" at the regular press conference. Yao Jian said that in the context of the current global economic crisis, it is believed that important economies in the world will take appropriate measures to restrain and restrict the use of trade remedy measures.
"The worst result is trade retaliation." As Zhou Dawei pointed out, nobody wants to see such a result.
From resistance to prevention
The attention that attracts people's attention seems to be nothing more than the US's six special safeguard surveys against China that were previously invisible. Therefore, while expressing optimism over this anti-special protection case, few people have noticed that China once opposed the special safeguarding agency. The price paid.
"The six special safeguard investigations are not targeted. This is a bargaining chip for Sino-American relations. On the surface, it has repeatedly failed to come to an end, but in reality China has paid a price. It has made on other issues and even non-economic issues. Concessions. Therefore, the victory against the special safeguard case is not worth writing a special book. Instead, China must consider how to really improve the level of manufacturing and fundamentally eliminate the occurrence of similar conditions." On this issue, Zhou Dawei sees Farther away.
While China's manufacturing industry is doing all over the world, its shortcomings such as low technological content, non-environmental protection, and the ability to win by quantity make it widely criticized. As a result, there are such strange phenomena in developed countries: On the one hand, they rely heavily on Chinese products, and on the other, they set various barriers to block Chinese products from time to time, and the initiation of special security applications is a typical approach.
"The final outcome of China's manufacturing industry depends on the improvement of China's industry. It is the common improvement of all industries." Zhou Dawei pointed out that although the accumulation of experience takes time, the opportunity has come.
He analyzed that, first of all, many developed countries have gradually given up on manufacturing, but they cannot do without manufacturing, which creates a part of the market for Chinese manufacturing.
Second, China is more familiar with many advanced manufacturing technologies in the world. At the same time, many international technology patents have expired. Therefore, it is just the right time for Chinese manufacturing companies to consider IP strategies.
"In addition, the country's investment is also very important, and the strength of individual enterprises alone is not enough." Zhou Dawei pointed out.
View related topics: China and the United States tire special security case
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