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Ear to the Ground

China vs. the House of Representatives

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Posted on Sep 29, 2010
Flickr / Vinoth Chandar (CC-BY)

Although the measure has almost no chance of passing the Senate, the House voted 348-79 to give President Obama the power to put tariffs on all Chinese imports. The legislative hissy fit is clearly intended to sate economically vulnerable voters who view China as a jobs threat.

New York Times:

The bill is unlikely to become law because the prospects for Senate approval are dim.

Nonetheless, the action was intended to hand President Obama additional leverage in what has become a major flashpoint between the world’s two largest economies. While tariffs have been slapped on specific products, from steel to tires, because of evidence of unfair export subsidies, the threat to put sizable tariffs on a country’s entire line exports to the United States is highly unusual — and, some argue, of dubious legality under international trade law. It reflects both election-year politics over jobs and huge frustration over unfulfilled promises by China to allow its currency to rise in value, which would make Chinese goods less competitive in the United States.

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By ssg13565, September 30, 2010 at 10:43 am Link to this comment

If having an industrial policy is a bad thing to do, why do countries that have them do so well economically?

When you find yourself in a contest, losers want to change the rules so the winner’s strategy is forbidden.

Aspiring winners look at the winning strategy and figure out how to adapt it to their style of play.

Since when did the USA decide to take on the role of loser? “It’s just not fair, the other player’s strategy is better than mine.  Make him stop.”

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By bool, September 30, 2010 at 6:34 am Link to this comment
(Unregistered commenter)

“The legislative hissy fit is clearly intended to sate economically vulnerable voters
who view China as a jobs threat.”

I thought this was to sate serious people who view unreciprocated free trade with
a nation that has an functioning industrial policy and tariffs as a bad idea.

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By Crowsnest, September 30, 2010 at 5:01 am Link to this comment
(Unregistered commenter)

The Obama administration is great at starting wars that cannot be won.

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By basho, September 30, 2010 at 2:47 am Link to this comment

right on Queenie

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By Queenie, September 29, 2010 at 6:44 pm Link to this comment

A better idea would be to tax the effing companies that move production offshore. Tax them until they cry uncle (Sam). Where are our kids and grandkids going to work? Not everyone can afford college. We have to start producing goods here with good pay. A man has got to have a job for crissake!

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By ssg13565, September 29, 2010 at 5:49 pm Link to this comment

So the Chinese are selling us stuff at too low a price.  That really makes me mad.  I wish they would raise the prices of all the stuff they sell us.

Are they selling stuff for less than it costs them?  How come they are getting so rich then?

Remember what China did to Japan over a fishing boat incident?  They cut off their access to lithium used in all the lithium batteries.

None of this adds up.  There is some truth out there that needs to be dug up.

Until the truth comes out, I will consider this behavior of our government to be a smoke screen for what is actually going on.  I am not about to applaud the House of Representatives for continuing to try to pull the wool over my eyes.

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By PatrickHenry, September 29, 2010 at 5:08 pm Link to this comment

The Chinese just put tariffs on U.S. chicken imports to China of up to 106%.

I think this is a good idea to impose tariffs and equalize the offshoring losses to our tax base that America is presently suffering.

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