CRI听力: US tariffs on Chinese tyres would cause lose-lose situation for both sides

A Chinese researcher believes special US tariffs imposed on Chinese tyre imports reflects protectionism. He warns that if the proposal is ultimately signed by US President Barack Obama, China will undoubtedly adopt measures to fight against US protectionism. So this case could cause a lose-lose situation for both countries.

Zhangcheng has more.

Reporter:

In Washington, the Office of US Trade Representatives held a hearing on Friday looking at the proposal to impose higher duties of up to 55 percent on Chinese-made tyres.(www.hXen.com)

Zhou Shijian, the executive director of the WTO Research Institute, says the hearing didn't change the proposal by the US International Trade Commission and it will be finally handed to Barack Obama.

"The US is taking a irresponsible protectionist measure. If President Obama eventually signs his name to the proposal, China has the right to resort to the WTO's dispute settlement system."

During the hearing, the United Steelworkers Union said protection is needed to safeguard the American tyre industry and stop Chinese manufactures from entering the premium tyre market. But that argument drew little support from US tyre producers and distributors. They do not think that lowering imports on Chinese tires will create more American jobs.

China argues that the large presence of Chinese tyres there has not been the result of excessive imports from China but rather from the abandoning of lower-end tyre products by major American manufactures.

Zhou points out that penalizing Chinese-made tyres could force many US tyre makers to shift production bases to other countries. If so, this case could cause more than 25,000 American workers to lose their jobs.

Meanwhile, he says that about 100,000 Chinese workers from 20 tyre producers will also be influenced by the outcome of this case.

So, if Obama finally agrees to the proposal, China will adopt counter-measures to withstand the US protectionist approach.

"If the US limits China's tyre exports and causes over 100,000 Chinese workers to lose their jobs, China may also limit a broad range of US imports including Boeing planes, beans and electrical appliances."

The US Trade representative, or USTR, hearing will be the final stage in the investigation before Obama rules on the recommendation.

The USTR will submit its recommendation to Obama by September 2nd. He is then required to make a decision within 15 days of receiving it.

Zhangcheng, CRI News.