US Chinese trade war heats up. US increases tariffs on steel. China probes GM imports.

[Statistical]

China protested U.S. duties on steel pipes and announced the start of an anti-dumping probe into American carmakers as trade tensions escalate ahead of President Barack Obama’s first visit to the nation this month. The levies of as much as 99 percent on $3.2 billion of Chinese exports are “discriminatory,” the Commerce Ministry in Beijing said on its Web site today. The penalties were announced in a preliminary decision by the U.S. Commerce Department yesterday.

The disputes may test relations between the U.S. and the biggest foreign buyer of its debt ahead of Obama’s visit on Nov. 16. The two nations, with $409 billion of trade between them, have swapped complaints about steel, poultry and tires as the worst economic crisis since the Great Depression spurred countries to protect jobs. "Falling demand, caused by the financial crisis, is the ultimate reason for the problems in the U.S. steel industry,” Yao Jian, a spokesman at the Chinese ministry, said in the statement. “The U.S. should take this into consideration in its further investigations and make a fair and reasonable final ruling.”

The Asian nation is the second-biggest trading partner for the U.S. after Canada. China plans to investigate whether some U.S.-made sports utility vehicles and cars sold in the Asian nation benefited unfairly from American government help, according to a government statement today. General Motors Co., the largest U.S. automaker, is majority owned by the government after a bankruptcy reorganization. The carmaker more than doubled September sales in China from a year ago.

http://www.bloomberg.com/apps/news?pid=20601103&sid=a99.TNVyDxzU

Trade wars are never good. Trade wars in a recession can be downright destructive.

[Kalyke]

1. Geebus, China. You're the pot calling the kettle black.

"China plans to investigate whether some U.S.-made sports utility vehicles and cars sold in the Asian nation benefited unfairly from American government help..."

Like the Chinese government hasn't aided and abetted all the low-wage factory work that has replaced quality American goods with cheap plastic Chinese crap?

[AndyA]

2. How far back do we go to look at imports and exports with China?

Historically, America has made it pretty easy to get Chinese goods imported to the states, while American-made items going to China don't get the same treatment.

It's time to level the playing field, especially considering the low quality of many Chinese items, and the fact that many don't meet safety or health standards here in the United States. They poison our pets, make us sick with their drywall, endanger our children with their toys.

Enough is enough!

[RDANGELO]

3. If the end result is more production in the U. S. ,

and a smaller trade deficit, that's good.

[Statistical]

4. If China shuts door on GM sales that could widen not shrink the trade deficit.

GM sales have DOUBLED in China compared to previous year. When most sales are generally flat or falling a company doubled sales. That results in more production, more hiring, more revenue.

Classic example of how countries can easily slit each others throat.

Sure US steel production goes up but most consumers don't go out and buy a ton of steel right? Who does? Oh yeah US companies. So now another cost for US companies has gone up. Japanese companies costs haven't gone up, European companies costs haven't gone up. So the American good costs more than the Japanese or European good.

US Steel wins, US companies that heavily US steel lose.

[madrchsod]

5. i worked at the largest and most efficient steel melt shop in america

we had three electric arc melt furnaces that put out more tonnage per day than anyone in america. there was a dedicated line from the local nuclear plant to the transformers and in the summer we could`t run more than one during the day and usually two at night because the power drain on the system.

i case you did`t notice this was past tense because the every time we lowered our price per ton the chinese dropped their price. so the end result was several thousands good paying union jobs were gone and a steel producer that was found over a 125 years ago was gone.

the mill was reopened with 300 employees and running under capacity. instead of making H beams,flats,and angles the only product is wire rod.

under your theory the we should get rid of our industries because chinese and indian workers work so much cheaper. their industries do not have to protect their workers or their environment like we do here ..after all that effects the bottom line.

i am former union guy who lost two good jobs because of the trade policies in the 70`s and 80`s. i get a little pissed off when i hear people think we can`t have jobs because we want a fair income for our labor.