Export taxes – China’s ‘big thumb on the scale’

29 June 2009 00:00

When US Trade Representative Ron Kirk announced a major trade suit against China last week, he juggled the seriousness of the allegations with the desire to avoid a nasty confrontation with China. “Before everyone writes that tensions are escalating between the US and China, remember: WTO disputes are a normal part of the relationship among mature trading partners,” he said, in an appeal that was duly ignored by the market. Coming amid fears of tit-for-tat protectionism, and while the ‘Buy America’ controversy rumbles on, this move – the first WTO suit since Obama came to office – is a step change in approach. Trade restrictions against China have so far been introduced drip-by-drip – an anti-dumping case here,...

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Export taxes – China’s ‘big thumb on the scale’

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