US forgets tariff policies run both ways

[TaiShang]

Changzhou Trina Solar Energy CEO: Extreme measures will hurt US consumers

By CGTN’s Wang Yue
2018-01-24

US President Donald Trump has signed into law a steep tariff on imported solar panels and washing machines. China expressed "strong dissatisfaction" with the tariffs. Gao Jifan, CEO of China's leading solar energy cooperation – Changzhou Trina Solar Energy－commented that the signing of Section 201 Actions with the intention of protecting US solar products may eventually hurt US consumers.

"I believe the signing of the tariff will do harm to solar energy industries both outside and inside the US,” Gao told CGTN on the sidelines of WEF annual meeting in Davos.

According to Gao’s elaboration, overall US solar capacity is only a little more than two gigawatts, while the demand is about 10 gigawatts. Therefore, the price of solar products will be pushed up largely after imposing a 30-percent tariff and the cost of those organizations and residents that invest in solar energy will be higher.

VCG Photo

“It surely will hurt the development of solar energy industries in the US. And in the end, it is the US consumers who will bear the cost of a 30-percent tariff,” Gao stressed.

And the Chinese Ministry of Commerce responded on Tuesday. Chief of Trade Remedy Investigation Bureau Wang Hejun said that "The US has repeatedly instituted trade-restricting measures to the same type of product. It is overprotection of its domestic industry and abuse of the trade restrictions. And we strongly oppose it. We are concerned about a trade war, and we do not want to see a trade war between China and the US. It will negatively affect not only the economy of two countries, but also the global economy."

To China and other countries, the tariff is also unreasonable, Gao added.

“In the past six years, the US has never stopped launching probes into other countries' solar products. However its own solar companies still can't compete with foreign companies. Now the president even took the measure of imposing Section 201 to protect them. I'm afraid there's no hope for US solar industries,” Gao noted.

“The US might hope after imposing 201 that many will set up their plants in the US. The tariff won't last long, but to build up a plant needs a 5-to-10-year plan. I doubt there is anyone who dares to do so with such uncertainty," Gao said.

 

[FlowerSummer]

China just need to place tariff on USA products, particularly on those products that china can produce domestically, like automobiles.

Focus on investing and developing domestic hi-tech industry, govt should wisely use tariff to protect our newborn hi-tech products.

No need to ban food products or energy resources, importing more raw materials and natural resources is good to reduce trade imbalance with USA.

 

[TaiShang]

US economic nationalism a hard sell in Davos

Source:Global Times Published: 2018/1/27 0:13:39

US President Donald Trump on Friday addressed the World Economic Forum in Davos, saying "America First does not mean America alone" and that "when the US grows, so does the world."

This address sounds like a PR statement in face of global opposition over the past year.

Trump did not name China in his Davos speech but his accusation that the US will not "turn a blind eye" to the theft of US intellectual property and state-subsidized economic interference sounds very much like the finger Washington has been recently pointing at Beijing. But we don't have to rush to accept these charges - Trump is also not satisfied with trade partners like Germany and Japan.

Trump has been substituting the concept of "free trade" with "fair trade." "Fair trade" appeared many times in his speech in support of "America First" policy. His fairness is for the US to benefit.

Trump must know that, in Davos, China's reputation as a supporter of free trade and globalization is sounder than that of the US. Germany too has a better reputation. If Washington wants to pick a fight with Beijing or Berlin on fair trade in Davos, it picked the wrong place.

Trump's "America First" policy is blatant economic nationalism. He invented this term and since he entered the White House, Trump half-forced and half-robbed US economic partners, plundering profits outside of international trade rules.

This is the result of an imbalance between world powers. Globalization is unavoidable. The US wishes to use its power advantage to adjust the rules of globalization to better fit its own interests, to maximize the US interests.

But this policy won't go far. It was first opposed by global opinion and such opposition reached a climax at the Davos forum. Soon it will meet opposition in trade. Frictions between the US and its allies may hurt their feelings and trigger a delicate change in world politics.

Conventional security risks in today's world are substantially smaller than the Cold War era and economic security grows ever more significant. The impetus for countries to favor geopolitical interests over economic interests is waning, making "America First" a hard sell.

"America First" is illogical. The Trump administration's overconfidence derives from superior US military might and its power to manipulate the global financial system. But the current US administration has misread the situation.

Washington seems to believe that US military prowess not only protects its national security but also forces other countries to pay tribute. Washington should know that if the US wants to lead the world, it cannot be the plunderer of the world.

 

[Jlaw]

Who's the mod in this section? Is Nihonjin modding this section?

 

[ZeEa5KPul]

So the article boils down to a proposal for China to skip the WTO resolution process and take action solely on its own judgment, while of course expecting to retain all the privileges of WTO membership.

Of course China expects to retain all the benefits of WTO membership after taking unilateral retaliatory action. What's more, it will.