U.S. Case Against China
U.S. Trade Representative Susan Schwab on Friday announced the filing with the international trade body in Geneva, alleging that China is paying subsidies to manufacturers to boost its exports. "This case is about standing up for America's workers and manufacturers," she said. And "We are seeking to level the playing field to allow U.S. manufacturers to compete fairly with Chinese firms," she added.
In this case, China government intervened in the trade-off between China and other countries. In order to boost its exports, China government is paying subsidies to manufacturers. "When markets don't achieve efficiency, government intervention can improve society's welfare." That is an example of government intervention. And also if the U.S. prevails in that process, the WTO would authorize it to levy retaliatory tariffs on Chinese goods. That is the way to allow U.S. manufactures to compete fairly with Chinese firms. It is also a government intervention to protect American production.
3 comments:
Tariff will affect Chinese company to exporting their product. But how about felling of American consumer???????
Maybe it is not a typical example, but it is a nice try to think about the international trades as a domestic market. In this view, WTO plays the leading role in business as a “government”. Therefore, it is important to make sure if WTO sits on the fence, and makes all decisions on the square.
I believe WTO plays the leading role in business, but I do not think WTO plays a role of government. WTO is the World Trade Organization. I think its roles is help and supervise the trade between countries.
Post a Comment