China to begin probing US car imports
With President Obama slapping down an anti dumping tax on Chinese made tyres, he single handedly irked the Chinese government and started what might become known as the auto wars.
China did not take too kindly to its tyres being priced out of the US market thanks to anti dumping taxes, and plans on probing US built cars that are imported into China. Currently several US car manufacturers are relying on Chinese sales to keep them afloat during rough economic times, the big three are the ones that are affected most, but it looks like GM and Chrysler are going to be taking this one hard:
- Buick Enclave
- Hummer models,
- Cadillac CTS, Escalade, SRX, CLX and XLR
- Dodge – Journey, Caliber, and Avenger
- Jeep – Patriot, Compass, Wrangler, Grand Jeep
- Ford – Lincoln Navigator, and Escape
According to media reports, the ministry of commerce has received information from the China Association of Automobile Manufacturers (CAAM) regarding the probing of anti dumping taxes on vehicles (including sedans and SUVs) that were produced in the USA, and have engine displacements over 2.0L. CAAM believes that this market segment is causing serious harm to domestically produced vehicles.
More news as we get it.
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That is ridiculous. China needs to grow up and stop acting like a 4 year old. I know many people are going to take offense to this but it is true. China wants everything produced in China and consumes very little products from other countries. If China wants to be one of the world powers it needs to step up to the place and take a look at what is good for the world and not what will just make money for China in the next couple years. Open your eyes to the future and quit thinking about right now so much.
Cool down dude.
How many of the above cars are made in the USA anyway?
A shame that the GM and Chrysler are probably going to get squeezed more, especially Chrysler as they are without a JV in China anyway.
The US needs to stop being an idiot in the first place. we’ll show you who the boss really is. GO CHINA!!
The Journey is produced in Mexico, but a few of its other Chrysler stable mates are built in Belvidere, USA
http://en.wikipedia.org/wiki/Belvidere_Assembly
Chrysler factories:
http://en.wikipedia.org/wiki/List_of_Chrysler_factories
Many of the Cadillac models are produced in Lansing USA.
So would the Mexican built Journey be under threat from import taxes? Technically an American car, but built in Mexico.
your comment is ridiculous, makes perfect sense if its within WTO rules.
WTF is “Open your eyes to the future and quit thinking about right now so much”…
y dont you, forget eating this year, and concentrate on eating next year genius…
think before you talk, u look stupid
The US should just respond with the same taxes as China has on imported cars for any Chinese car coming into the US. China would throw a fit for sure.
It isn’t really this bugging me. It bugs me that China wants to dominate all markets. More power to them if they can. But they need to step up more on the world level and help out more and not just be looking for their own profit. It really is ridiculous and it needs to start in China first with them helping out their own people and the tops guys not pocketing all the money themselves. I run a factory in China. It is ridiculous how much more we could pay workers if we weren’t being squeezed by Customs, the fire department and everyone else for under the table money.
It’s more like you stupid Americans are jealous that Asians are taking over in all areas, so you slap a shitty tax in a pathetic attempt to get people to buy Made in America crap.
Ed,
Do you think Made IN China crap is better? I have driven many Chinese brand cars lately. I decided there is no way I would buy one. They are all junk from what I can see. I really don’t care if jobs go to China at this point. The thing I am concerned with is that China isn’t taking care of its own people yet and if they take on everyones manufacturing they need to take care of their own people so all Chinese can afford to be a buying power and make up for the buying power loss in other countries. China is far from that point right now.
Ed lets not get into racist comments here. No one called you a moron or retarded. Did they?
Colleagues,
It has much more to do with international relationship than just with market.
USA like EU usually perform tricky games while negotiating abroad their supplying contracts exchange by imports. Just to give to all of you an idea, EU has tried to supply vehicles to Mercosul (Common Market involving Brazil, Argentina, Paraguay and Uruguay and soon also Venezuela) without import duties, but in the other hand have created the white bureaucracy to importation of food and agricultural products protecting their market against the products coming from these countries.
By the other hand USA while trying to create the ALCA (a common market involving the whole 3 American Countries, have requested the complete oppening to their products keeping in the other side protection to their market.
Import and Export is a two hand lane, if one close his intrance lane the other part has the right to do the same. Therefore China is exercising its right to close his lane!
A few weeks ago, same was done by Brazil against some Protection Actions taken inside Mercosul (nobody can believe but they started to close their market for some Brazilian Products while they keep allowing the importing coming from non-members countries), when Brazil close the importation for some products coming from Argentina. Now, after the whole mess (probably created to protect a few importers in Argentina and not the local industry itself), Argentina accepted to seat on a table to discuss the matter.
Best regards,
J.I.Hosang
America has the Chinese consumers to thank for rescuing nearly bankrupt GM.
GM isn’t rescued. I think the government should have let it and crysler go. I would never buy either of their cars.
@ Head Honcho.
The U.S. GDP per capita is far above China’s. For a “common good” then it would make sense for more production relocation to China and more income going towards China.
I agree. Chinas GDP needs to grown. But will the average Chinese consumers wages go up or will the money go into the large pockets of all the Chinese Government employees? I am just worried it isn’t going to make it to the Chinese people. Then the grown of consumed products won’t ever have the growth needed to make up with any losses from it going down in other countries. Things need to balance out and if too much money is just being pocketed it isn’t doing anyone that much good. One person taking 1 million RMB vs 100 people getting 10,000 rmb to spend is not the same. The 100 people having the money is way more beneficial to the community.
Think about it. More production relocation to China = more people will be hired for those positions. Those people now have a wage that they otherwise did not have before.
The US government slapping higher taxes on Chinese imports, is that better or worse for the average Chinese worker? Worse of course.
Then China goes tic-for-tac and slap tax on US imports. Is that better for the average Chinese worker? Better I say!
Money flowing into China, no matter initially who pockets them, it will eventually make its way to the average person via the multiplier effect.
That sounds like the trickle down effect Ronald Regan preached for years. The problem is it doesn’t work that way. Look at what happened to the US. It just doesn’t make its way down the factory workers and they still get low pay, crappy housing away from their families and no life.
The trickle down effect does work all the time. The rich elites will need to spend on goods and services, and the poor makes these goods and provides these services. Of course the the laborers will not be as rich as the CEO. Because How much will those workers earn if it weren’t for those low paying factory jobs? Nothing. Their skills are not in demand, this is what causes their wages to be so low. If the government interferes with this, it’s a step towards socialism.
Not sure if you forgot but China is a communist country.
Take a trip to China, or even live there for a year. You’ll find that China is more capitalist than the US.
I have been living in China for 5 years. China is way more separated than the classes in th US. It is really obvious. That is what I am saying. You aren’t going to see much of a trickle down effect. The new apartments in my town are half a million USD. They are nothing special. People are buying them thinking the price is going to go up. 80% of the new apartments in this town are empty because they were purchased for investment. The worst investment out there. The quality of homes here goes down so fast. Nothing is made to last in homes. Plus how many people are going be able to afford over half a million USD for a home in China anyway. Seem ridiculous when you pay that for an empty cement apartment with nothing finished.
There is a trickle down effect, take a trip out to the suburbs or the villages to see the effect in action.
Farmers go build buildings in the city, they take their salary back to the village and build/improve their own family home, buy white goods, and in some cases vehicles too.
The trickle down effect is not just monetary either. Those workers learn new skills while they are away from home that they wouldn’t have the opportunity to learn if still living out in the countryside.
@ Head Honcho.
Yes, in China you don’t “see” as much income equality as the US. There are several reasons for that.
In China, people (on average) do not take out large mortgages to buy their first home, unlike the US where nearly everyone takes out a massive mortgage on their first home. Hence all the shining new condos popping up are quite empty in China. It is true that most Chinese people cannot afford them, but if everyone takes out mortgage to buy them, the occupancy rate would be a lot higher.
Of course it’s probably a good thing that people don’t craze over debt in China, because Americans’ obsession with debt is the leading cause for this recent financial crisis. The same thing for cars, people in China tend to save until they have XXX,XXX yuan cash before buying a car.
Some sources indicates that saving rates in China is as high as 50%, whereas in US it’s negative something. That’s why some many people don’t “look” rich here because they their saved up cash have not translated into material possessions.
Finally, you may a person eating in one of those “hole in the wall” restaurant in China, thinking that he/she is rather poor, only to see him/her leaving the restaurant and hop into a brand new Lexus. A lot of these things makes you
think that the people are very poor but in reality they are not.
In the Us, we should put high taxes on all Chinese goods and Wal-Mart!
I wouldn’t say high taxes but they do need to be raised. It is ridiculous how Wal-Mart treats its suppliers in China. Yeah they offer low prices but they rape their suppliers and put them out of business. Look at the taxes China puts on everything coming into China from another country. It isn’t a fair playing field in China. Why should other countries let China ship over goods at low taxes when they don’t let it happen in their country?
Please keep it clean, without the nationalistic diatribe, please be gentlemen/ladies.
This reminds me of a few years back when the Japanese puts taxes on some agricultural products and the Chinese retaliated with taxes on Japanese electronics and cars….
http://english.peopledaily.com.cn/200112/21/print20011221_87207.html
I think that its the US of A that needs to cool down. Its about to be ranked well down in the worlds economies and has already pissed of so many countries with its hollier than thou attitudes.
Lets face it most American cars (and truck) just dont cut the mustard anymore.
The USA has always been the master at trade embargos and dumping subsidised goods on the worls doorstep.
Imagine how hard the poor yankies will scream and bitch and moan when they have to pay for non Chinese goods!!
Keep up the good work China!!
China needs to pick up the pace and quality of the Chinese designed cars. I drove the Great Wall Cool bear, and the Brillance hantchback. Both still drive like crap. Why can’t one of these companies design something instead of just putting scrap parts together?
Well,
Why don’t we require at least 51% American ownership for any Chinese company that wants to manufacture anything in the USA. They do it to us.
How about requiring Chinese companies to submit detailed plans for goods they want to sell in the USA. They do it to us. They call it safety review. It’s better called intellectual property transfer.
While we’re at it. Make Chinese companies subject to American courts when it comes to negligence. So they have to pay after dumping defective goods (acidic drywall, lead…in everything it seems, toxic clothing, flammable baby clothes, melamine in pet food, baby formula that kills babies, etc).
Heck we could even start a Department of Chinese Product Safety for those people who really enjoy government agencies.
I know China doesn’t require 51% ownership in all foreign factories. I own 100% of mine. It must just be certain products now like cars that they want to dominate. All of the manufacturing would not have moved to China if China needed to own 51% of all foreign factories. It just wouldnt be possible.
I really dont know where you get your info from. But you sound like a very ill informed Americano who doesnt understand anything beyond your own home boundries.
Why not fix your own mess before pointing the finger at others.
OK guys. I won’t profess to be an expert on US-China trade. I get my information from US media and they can be pretty inaccurate. And, yes I am an American. But, you cannot deny that Chinese manufactured goods have had some pretty stiff safety concerns.
Let me add this. The Chinese government probe alleging dumping of US manufactured cars looks pretty baseless. The yuan – dollar peg is a giant subsidy of Chinese manufactured goods. The dollar drops, the yuan doesn’t rise even with the ~ 270 billion dollar trade deficit. Bankrupt Chrysler dumping their cheapest cars on the Chinese market? I don’t think they could begin to afford it.
And dogtucker you can poke at my information if you’d like. But right now you are looking like a bigot. But thankyou for learning enough English to expose yourself as such.
A bigot, interesting comment! Especially as you cast aspertions at my English-sounding a bit bigited yourself now? Plus with pointed hints at my knowledge base you are shot by your own petard.
Im in the auto industry and spend a lot of time in both China and the USA (amongst other countrys), so therefore have a good basis to back my ‘bigoted’ information on.
hahahahha its really funny reading all these comments. why are you all waisting your time on here talking when you should be out there taking action?