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Rational decision needed in settling China tire case

(Xinhua)
Updated: 2009-09-03 14:39

US President Barack Obama is due to decide in about two weeks whether or not to impose punitive duties on Chinese tire imports. Despite huge domestic pressure, the president is expected to make a rational decision to protect both US interests and overall China-US trade ties.

The decision is due by September 17, with some trade protectionists insisting on imposing punitive duties of up to 55 percent on Chinese tyres to "save American jobs."

The case has become an opportunity for some politicians at the center of US partisan politics to make a show. However, the US government is strongly expected to take into account the long-term development of Sino-American trade relations in making its decision.

Related readings:  US trade official submits Chinese tire case to Obama  Mutual trust can ride over challenges

Details of the case have emerged clearly after several rounds of consultations, reviews and hearings between the two nations.

The United Steelworkers of America had claimed that tyres from China had led to loss of more than 5,000 jobs and the US International Trade Commission accused Chinese tire firms of disrupting the US market.

However, the charges were hardly legitimate, regardless of the fact that the tyres produced by China and the United States belong to different levels of the US market and are not in direct competition.

If the punitive duties being called for by some politicians and trade protectionists are imposed, more than 10,000 Americans in the tire distribution and retail sectors may lose their jobs, along with about 100,000 Chinese manufacturing workers. In addition, US tire firms with investment in China will suffer.

On these figures, punishing China's tire exporters will definitely lead to a lose-lose situation and requires strong opposition from both sides.

Notably, accusations against Chinese tyres failed to win support from some American tire firms and unions. Some giant US tire manufacturers, including Cooper, have warned that mishandling the tire case may lead to further troubles.

As the first "special safeguard investigation" on Chinese products under the Obama administration, the US decision on this case will be seen as an indicator of the government's policies and it thus has drawn particular attention.

The Chinese side has carried out close coordination and dialogue with the United States, in the hope of maintaining reasonable trade rules and protecting the rights of both Chinese and US workers and firms.

China and the United States are each other's second largest trade partners, and their interests and concerns are closely intertwined. Any trade frictions may lead to major losses on both sides. Handling of such disputes requires equal dialogue and active coordination so that decisions can be based on adequate proof and consideration of all facets of the issue.

With the global economy showing early signs of recovery, the international community should work harder to strengthen cooperation and try to avoid trade friction and curb protectionism.

It makes no difference when it comes to the Chinese tire case. The US leadership is responsible for making a rational decision as part of the efforts to boost bilateral trade ties, which are vital to the global economic recovery.