CRI听力: Insiders: US Tariffs on Chinese Tires is Serious Trade Protectionism

Anchor: US president Barack Obama's decision to impose tariffs on imported China-made tires has aroused opposition among industry insiders.

Experts say the move may trigger a chain reaction of trade protectionist measures.

Wang Lei has the details.(www.hXen.com)

US President Barack Obama last week decided to impose punitive tariffs on all car and light truck tires imported from China for three years.

The tariffs are set at 35 percent for the first year, 30 percent in the second and 25 percent in the third.

Philip Levy, Resident Scholar at American Enterprises Institute says the decision was made amid domestic political pressure.

"The two-groups - there is a more protectionist labor interest group and there is a sort of pro-business internationalist group. When you are a president, you need to make a decision. I think it's a wrong decision. The US should not impose protectionism but there may be very strong political pressure on them to do it."

Earlier this year, the US Steelworkers union filed a petition against China for import relief and won a favorable ruling from the US International Trade Commission.

The Shanghai-based "Liberation Daily" quoted Chen Fengying, an expert from China Institutes of Contemporary International Relations as saying that, as most US people consider the country's rising unemployment rate a result of the threats of foreign countries, Obama imposed such a punitive measure to reassure the masses.

Niels Dalman, a senior industry consultant in Switzerland, says the US has violated commitments made at the G20 financial summit in London.

"At the G20 meetings in Washington and London, it was agreed to avoid trade protectionism and uncoordinated global investment. The next G20 meeting will take place in Pittsburg this month. And it is important that the meeting should renew its commitments to open markets and commitments to phasing out protectionism."

Professor Zhou Dunren, Deputy Director of the Pudong Institute for the US Economy in Shanghai says China has to take responsive actions to protect its interests as soon as possible.

"Under the current situation, if China doesn't take any responsive actions towards the case, in future, other countries may impose similar duties on China. So we should look at its negative impact in the long term."

Zhou also says the US' move will trigger a chain reaction of trade protectionist measures that will slow the world economic recovery.

China's Ministry of Commerce said the Chinese government will continue to take necessary measures to support the tire industry and deal with the negative impact caused by the ruling. China also reserves the right to bring the case to the World Trade Organization.

Wang Lei, CRI news.