"The actions taken by the U.S. government are in line with WTO regulations and are also conducted within the framework of China's accession to the WTO and the United States."
On the morning of October 27th, US Secretary of Commerce Gary Locke answered the newspaper reporter’s question on “tire special security case†in Guangzhou.
On the second day, October 28, Locke will attend the China-U.S. Economic and Trade Joint Committee (JCCT) in Hangzhou.
Locke also said, "Next in Hangzhou, we will discuss with the Chinese officials further." He also said, "If the two sides can fully communicate before the complaint appears, it must be better. This also helps China to understand more about the United States. The system is in the interest of both parties."
On the same day, the media began to report that Guangzhou's Huangpu Customs released statistical data indicating that in the first three quarters of this year, Guangdong exported 28.99 million tires, a decrease of 22.4% compared to the same period of last year; the United States continues to be the largest tire in China. In the export market, exports totaled 9.527 million, a year-on-year decrease of 32.2%. Moreover, although tire exports from Guangdong have been hovering low in the past year, they have remained slightly upward, reaching a sharp turn for the first time in September, dropping sharply to nearly 60%— - This is easy to think about whether it is related to the "China and the United States tire special security case."
On September 11, the United States decided to impose a three-year punitive tariff on all cars and light truck tires imported from China. The tax rate is 35% for the first year, 30% for the second year, and 25% for the third year.
Earlier, on September 4th, Huangpu Customs had already mentioned on its official website that “the tire industry has become one of the hardest-hit areas where China has encountered the highest frequency of anti-dumping in foreign countries and has been successively affected by the United States, Venezuela, and Australia. Anti-dumping investigations in Brazil, Peru, Egypt, Argentina, Turkey, South Africa, Mexico, India, and many other countries... This year China's tire industry’s major economic indicators have fallen at a double-digit rate year-on-year, with one-third of companies losing money. At the time, once the United States imposed sanctions on China’s tire exports and implemented a special quota reduction plan, China’s tire export volume will decline by about 12%, which will reduce the growth rate of the rubber industry by 5 to 6 percentage points, which will adversely affect the Chinese tire industry. Severe or will cause 20,000 to 30,000 Chinese tire workers to lose their jobs..."
However, at the Guangzhou press conference on October 27, when asked what the agenda for the JCCT held in Hangzhou was, what the United States hoped to achieve, Locke did not disclose the specific content, but said, “We have been doing In many areas of work, our goal is to ensure that when President Obama meets President Hu Jintao three weeks later, both sides can make progress in U.S.-China trade relations."
Locke reiterated that the United States is the most open country in terms of investment, and that trade barriers and tariffs are very small compared to other countries. Cases recently seen in newspapers are also rare.
This is highly consistent with the answer to the question asked by the newly appointed U.S. ambassador to China on the previous day in Guangzhou. At the time, Hong Bopei emphasized that "protectionism is not the purpose of the U.S. government." Moreover, Hong Bopei believes that China is now the U.S. largest trading partner. Under the background of bilateral trade worth US$400 billion a year, some disputes are inevitable. For example, the United States has had quite a bitter dispute with its closest trading partner, Canada, and the European Union.
According to Huntsman, it is now the best time for U.S.-China relations. This is also confirmed by Gary Locke.
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