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China-US trade war unlikely


http://en.youth.cn   2009-11-16 13:44:00

Although trade friction between China and the United States will likely rise in the months ahead as the economic recovery of the US remains in limbo, there is little possibility that the two countries will become embroiled in a full-blown trade war, analysts said.

Since US President Barack Obama issued a special duty on tire imports from China in September, the first and largest, such maneuver of his administration, trade conflicts between two of the world's most important economies have sharpened and have spread to other areas, particularly in recent days.

On Nov 4, the US requested that the World Trade Organization (WTO) establish a dispute settlement panel to rule on China's restraints on exports of raw materials, which the Chinese government insists is consistent with WTO rules.

That same day, the US Commerce Department slapped preliminary anti-dumping duties on Chinese steel pipe worth $2.6 billion. The move came after preliminary anti-subsidy duties were put on the pipe, which is used in oil and gas lines, in September.

On Nov 5 the US International Trade Commission approved another two probes of imports from China: glossy magazine-quality paper and certain salts.

The new levies were approved about one week ahead of Obama's trip to Asia. The trip includes a four-day visit to China, starting Sunday. China is regarded as one of his most important destinations during the trip.

"As the unemployment rate is expected to remain high next year, the US will initiate more trade protectionist cases or/and measures against China," said He Weiwen, a senior expert on WTO and China-US trade relations.

 
source : china daily     editor:: Ivy
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