China Daily - U.S. Edition: Trade Imbalance Teeters Amid Quarrels
Washington, D.C., partner Elliot Feldman, leader of Baker Hostetler's international trade practice, was quoted in the September 28, 2009, China Daily - U.S. Edition article, "Trade Imbalance Teeters Amid Quarrels."
According to the article, trade diplomacy between the United States and China "skidded" earlier this month when the United States slapped tariffs on imports of Chinese-made tires. The Chinese government quickly struck back, announcing it would investigate complaints that American automobile and chicken parts were being "dumped" in China, while Beijing escalated the action further with a complaint to the WTO, according to the article.
The big question being debated, according to the article, is whether these impasses are simply typical snags that come with international trade relations, or if they are signaling the start of a trade war between two of the world's largest economies. Feldman, an author of the firm's China-U.S. Trade Law blog, said the United States and China are "not interested in a trade war." However, Feldman added that "there will be continuing trade frictions. China is the manufacturing center of the world, while the US is the consumer. Since China is shifting into a more consumer-based society, which explains why there is currently a trade imbalance."
Looking ahead to the future of the U.S.-China trade relationship, Feldman noted that Bush administration appointments are still governing U.S. trade policy toward China; therefore the U.S.-China trade relationship will encounter more conflicts. Until new appointments are made, Feldman was hesitant to predict the trade trajectory between the United States and China.
"The Obama administration has yet to fill most of the political appointee positions in the Commerce Department," he said. "They are most particularly absent in the International Trade Administration, which is primarily responsible for developing and implementing policies to counter unfair trading practices."
Click to read the full article from the China Daily-U.S. Edition website.