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September 14, 2009
U.S. tariffs on Chinese tire imports spark trade dispute

The latest trade dispute between the United States and China — the world’s largest and third-largest economies — is brewing, after U.S. President Barack Obama approved much higher duties on Chinese-made tires on Friday.

Those cheaper imports have grown substantially over the last five years, and now account for about one of every five tires purchased in the U.S. At the same time, production of American-made tires has declined and more than 5,000 jobs have been lost.

On Monday, China hit back, filing a complaint with the World Trade Organization and announcing an investigation into whether U.S. chicken and automotive products are being dumped at unfairly low prices in China.

Do you think China will overtake the United States as the world’s leading economic power?

Tell us what you think in the comments section below.

Daniel Rosen of the Rhodium Group, an economic research firm, joins Daljit Dhaliwal to discuss the larger implications of the trade dispute with China.

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I have read all comment above, but I don’t find out any comment about the legal respect of China imported tyre dispute. China requested a establishment of Panel at DISPUTE SETTLEMENT BODY (WTO)in December. Therefore, DSB will issue their judgment in according to international law.Can you help me? Because I have a final test on International Trade Law about this dispute.


While there may be some manufacturing loss, there are other aspects to the value chain which can bring wages to American workers. Using the site below as an example, I can see at least 4 points where Americans would profit from the sale of a Chinese-made tire:

Overall, things like this just move us up the chain, and the lesser developed nations absorb the more labor intensive tasks.


What I hate is that everyone thinks that the US doesn’t make anything anymore. That’s not true! We are still the world’s largest manufacturer. America has had around 30 million manufacturing jobs since the 1960s. We only think we are losing them because they are moving from the Midwest to the South.


The US economy is still very large compare to China. If China keeps it growth rate at the current speed probably takes another 10-15 years to overtake the US.


like it or not were in a bad recession and all american manufacturing jobs are gone foverer.this is why china will become major force in the whole world econmy.


Is the Pope a Catholic? Of course China will become the world’s leading economic and military power. Chairman Mao is probably turning over in his grave as he witnesses China’s mixed economy transforming his agrarian society into a so-called “New China”.


I can name 8 tire plants that have closed since 2004 plus 3 in Mexico and Canada, add 5 steelcord plants closing along with support industries and you can double the job loss. What concerns me about this industry is that most tires produced in China are the result of Tire Mfg. moved from North America by American & European companies. This will soon result in zero military, aircraft, industrial or agricultural tires produced under our control. The Obama administration is addressing a security issue by helping to maintain at least a small capability here in the U.S.


Pictures tell the untold story, which is the working people of the world have no leverage. They are at the mercy of capital.


I don’t see how the United States can maintain its number one economic leadership when business corporation are only interested in immediate profits, and while consumers only are interested in the cheapest price rather than top quality of products. Our demand to have immediate gratification has an alarming effect on sustainable economic survival. In future years perhaps the chinese will be in the same situation.


China is already selling its investments in Treasury notes and encouraging its citizens to buy gold bullion. Of course China will overtake our bloated and inflated economy — in easily less than 10 years.


Of course China will overtake the US. If the question is whether they will do it in three to five years, no. In 20 years, perhaps. By mid-century, most certainly.

They have four times as many people as this country does. The question is how soon will they build a consumer economy large enough to bring a meaningful percentage of their population.


Sure things can be made in America but to compete in a global market you would need to find workers willing to work for three dollars a day

I think it would be easier to force the world to pay a global minimum wage


Just think what things would be like without China to make most of our shoes, and thousands of other items we all use every day! Can’t they make ANYTHING here in North America?


For years China has dumped products on the US driving companies to cheaper labor

It may be too late to make a real difference, today I hear the US is in its worst depression ever?

Too little too late

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