In the decade since my study was conducted, China's cheating has only worsened and become more institutionalized. For example, the bipartisan Commission on the Theft of American Intellectual Property in 2013 estimated that the U.S. loses more than $300 billion a year to intellectual property theft and blames China for 50% to 80% of the problem. The Peterson Institute for International Economics in 2012 attributed "half or more of excess U.S. unemployment" to currency manipulation and identified China as "by far, the largest" currency manipulator. Since 2009, the U.S. trade representative has taken 13 cases against China to the World Trade Organization. The most recent, filed just last week, targeted illegal export duties on raw materials like copper, lead and tin.
Meanwhile, the unfair trade advantages China reaps from lax environmental and health and safety regulations are written in blood: More than 60,000 Chinese workers perished in workplace accidents in 2014 and up to a half-million people die prematurely because of China's horrific air pollution.
China has been waging an undeclared trade war on the U.S. since joining the World Trade Organization in 2001. The casualties are obvious: More than 50,000 American factories shuttered. Zero gains in real household median income. Our annual GDP growth rate cut almost in half since 2001 compared with the last half of the 20th century.
For Trump, steep tariffs are a strategic negotiating strategy to stop China, or any other country, from cheating on international trade deals. His broader goal is to eliminate our massive trade deficit, jumpstart GDP growth and create millions of new jobs. That in turn will boost income levels and generate the tax revenues necessary to pay for the infrastructure, social services, and defense needs of the greatest nation in the world.
This post was edited by sfphoto at 2018-1-23 05:51
The Trump Administration wants to pursue economic protectionism by imposing barriers to foreign trade using tariffs, taxes, sanctions, etc. But those unilateral actions would violate both the spirit and letter of international trade treaties such as the WTO, NAFTA, etc. which would force the Trump Administration to withdraw the USA from those same treaties underpinning the international trading system. That would also affect the status of the USD as the international trade and settlement currency which serves the international financial system. This would also imply ipso facto the negation of the USD as the international reserve currency.
This post was edited by sfphoto at 2018-1-23 16:32
Boston101 Post time: 2018-1-23 07:33
The point is that China already is in violation.
Nope, not by the rules of the WTO which allows trade remedies only on a case-by-case basis. The Trump Administration just slapped 30% tariffs on solar panels but that would violate WTO rules. Same thing happened when Obama slapped tariffs on steel which was overruled by the WTO. So the only way for the Trump Administration to block imports is to withdraw the USA from the WTO.
sfphoto Post time: 2018-1-23 15:03
Nope, not by the rules of the WTO which allows trade remedies only on a case-by-case basis. The Tru ...
China has been the target of 29 WTO disputes initiated by its trading partners. The Chinese measures being challenged by the US include semiconductors, auto parts, intellectual property rights, trading rights and distribution services for certain products, grants and loans and, more recently, wind power equipment, renewable energy, and access to resources. Many of these cases involve the Chinese government supporting domestic enterprises through tariffs, subsidies, grants, refunds, and exemptions from taxes that either provided an unfair advantage to Chinese exporters, or restricted foreign market access in China.
Tariffs of solar panel? It's about time. Quid pro quo