10-05-2019, 01:09 PM
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#408 (permalink)
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Human Environmentalist
Join Date: Aug 2010
Location: Oregon
Posts: 12,828
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I'm not necessarily for the tariffs, but this has been an issue for a long time;
Wiki
Quote:
As a new member, China agreed to rapidly lower import tariffs and open its markets, although many trade officials doubted it would stand by those promises.[20] China did cut tariffs after it joined the WTO, but it nonetheless continued to steal U.S. intellectual property (IP) and forced American companies to transfer technology to access the Chinese market, which were violations of WTO rules.[20]
In 2008, the WTO issued a formal ruling against China for requiring foreign automakers operating there to buy most components from local suppliers or face higher tariffs, 25 percent, instead of the normal 10 percent. The WTO agreed that it amounted to an unfair discrimination against foreign parts, a violation of global trade rules.[21] The original complaint was filed in 2006 by the European Union, the United States and Canada, by which time there had already been accusations against China for using a combination of subsidies, tax incentives and an undervalued currency to gain an unfair advantage over foreign companies operating in China.[21]
China lowered its average import tariffs to 10% by 2005 from the 40% it maintained in the 1990s.[20] In 2005 Chinese exports to the U.S. increased 31 percent, but imports from the U.S. rose only 16 percent. And while the U.S. trade deficit with China was $90.2 billion in 2001 ($130 billion in 2019 dollars), it nearly doubled by 2005.[20] In the four years after joining the WTO, China in general complied with many of its legal obligations, including passing laws and meeting deadlines. However, it was slow to enforce intellectual property rights and add transparency to its industrial rules and regulations, which made it difficult for U.S. businesses to access its market.[20] By 2019 the estimated costs to the U.S. economy from Chinese IP theft was between $225 billion and $600 billion annually.[22]
The Obama administration confronted other issues in 2010, when it opened an investigation into whether the Chinese government was subsidizing its alternative energy companies, such as solar and wind turbine, in violation of WTO guidelines that it agreed to. It was one of the first challenges of China's alleged efforts to control major growing industries.[23] As explained by Obama's Trade Representative, Ron Kirk, "Green technology will be an engine for the jobs of the future, and this administration is committed to ensuring a level playing field for American workers."[23]
United Steelworkers President Leo Gerard said that those subsidies were in "direct violation" of WTO rules.[24] Along with disallowed subsidies, Gerard pointed out that U.S. firms establishing joint ventures with Chinese companies must surrender technologies and designs as a condition of doing business:
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So the whole world and the Obama administration took issue with China, and Trump did something about it. Not necessarily the right thing, as I don't expect China to cease IP theft. It's easy to steal IP compared to shoes or other physical goods China manufactures.
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