trade-friction

Sincethedevelopmentsofhumansociety,thetradeisoccupiedinhumanlife.Thetradepatternalsohasbeendevelopedwiththeprogressofsociety.Intheancienttime,peoplewereengagedinthesimplesttrade-bartertrade,nevertheless,peoplebreakthebarrierofnationandareengagedinmultilateraltradetheinternationaltradeinmoderntime.Asthetradepatternbecomemoreadvanced,theproblemsoftradebecomemoreandmorecomplicatedaswell.ThetradebetweenChinaandUSisasoundexampletodemonstratethefrictionofinternationalandmultilateraltrade,becauseChinaandUSarebothoneoflargesttradecountries.Chinaisthelargestdevelopingcountry.ChinaisthesecondlargesttradepartnertoAmerica,thethirdexportmarkettoAmerica,andthefirstimportmarkettoAmerica.TheUSisthemostdevelopedcountry.Americaisthesecondtradepartner,thesecondexportmarket,andthesixthimportmarkettoChina.Thetradebetweentwonationsnotonlyaffecttheeconomyoftwonations,butalsohastheprofoundeffectontheglobaltradeconditionandeconomicdevelopment.ThetradebetweenChinaandUScandatebackto1979whichthetwonationsestablishedtheofficialtraderelationship.In1979,thetradevolumewas2billiondollars,however,tradevolumereachesthe302.08billiondollarsin2002.Fromthesedata,wecanseethatthetradevolumebetweenChinaandUSincrease150timesatonly28years.AstheChinaparticipatedintheWTOin2002,thetraderelationshipbetweenChinaandUShasbeenexpanded.Thedata,whichisfromtheChineseCommercialDepartmentwebsite,indicatesthatin2003,thetradevolumebrokethe100billiondollarsandreachedthe126.3billiondollars.In2007,thetradevolumebetweenChinaandUSreachedthe302.08billiondollarsandincreasedthe15percent.ChinaimportedfromAmericacanreach69.4billiondollars,anditincreased17.2percentcomparingthelastyear.Therefore,theChinabecomethesecondlargesttradepartnerandthesixthimportmarkettoAmerica.Inthemeantime,accordingtothedata,whichisfromtheAmericanCustomers,ChinaexceededtheCanadaandbecomethelargestimporttradepartner.Chineseimportquotawas16.5percentcomparingtotheAmericanwholeimportquota.Becauseofthiscondition,ChinaexceededtheJapanandbecomethethirdexportmarketin2007.However,everycoinhastwosides.WhenweobtainthebenefitfromthetradebetweenChinaandAmerica,wemustconsidertheadverseaspect.Withthetradevolumeexpanded,thetradefrictionbetweenChinaandAmericahasbecomethehotissues.NotonlytheChineseandAmericanconcernthisissue,butalsotheothercountriespaymuchattentiontothisissueforthetradebetweenandChinaandAmericahasoccupiedmuchmorepercentinworldtrade.ThetradeconditionbetweenChinaandAmericadirectlyaffectthetradebenefitofothercountries.Themaindisputeoccursinfollowingseveralaspects.Thefirstandforemostistheanti-dumpingandanti-countervailing.Theseconditionsdependonthedifferenceinstructureofimportandexport.Chinahascomparativeadvantageincheaperlaborforceandresource.Ontheonehand,thiscomparativeadvantagebringthepreponderance.Ontheotherhand,italsobringthetroubletoChinesetrade.Chinacanproducethecheapergoods,butthequalityissameastheothergoodswhichareproducedbyAmerica.ThisbehaviorshocktheAmericaindustry.Thesecondisthetradeimbalance.Withtradevolumeexpanded,Americantradedeficitincrease.Since1993,Chinamakesthetradedeficitbecomethetradesurplus.Meanwhile,Chinesetradesurplushasincreasedyeartoyear.Accordingtotherelativedata,in2007,theChinesetradesurpluscanreachthe163.3billiondollars.Therefore,ChinahasbecometheAmericanlargesttradedeficitcountry.Thethirdistheexchangerate.SinceChinapegstheAmericanfixedexchangerate,thismakethepriceisrelativelylowandimprovetheexportthatChinaexporttoAmerica.Inaddition,thispolicyrestricttradethatAmericaexportstotheChina.So,AmericaurgetheChinatoappreciate,butChinaadoptsthemoderateappreciation.Thereafter,thetradefrictionhasseriouslyincreased.Thelastisthepatentandhightechnologyfields.Becauseofcheaperproductionendowments,manyAmericancompanieschoosetooutsourcetheirsemi-manufacturestofinishatChina.ThissituationcausesaconvenientwaytoChinaimitatetheproducts.Inordertoavoidmorelossinhightechnology,theAmericaDepartmentofCommerceproclaimedalistwhichrestricttheChinaimportthehightechnologyproductsin2007.Theseproductsincludeaircraftengine,laser,andotheradvancedmanufactures.BasedonthesedisputesbetweenChinaandAmerica,ChinaandAmericahappenedadisputeabouttheimportsofpassagevehicleandlighttrucktiresfromChinain2009.On14September2009,ChinarequestedconsultationswiththeUnitedStatesconcerningincreasedtariffsoncertainpassengervehicleandlighttrucktyres(subjecttyres)fromChina.Thedecisionwasannouncedon11September2009followinganinvestigationpursuanttosection421oftheTradeActof1974.Atthesametime,ChinacameupwiththeformalconsultationtoWTO.ChinaandtheUnitedStatesheldconsultationsinGenevaon9November2009,butfailedtoresolvethedispute.On9December2009,Chinarequestedtheestablishmentofapanel.ThiscaseiscalledthefirstcaseofAmericaandChinatradeprotectionintheObamaera.TheleadingfactorofthisdisputeisthattheWhiteHousedeclarethatfollowingaPresidentialdecisionadditionaldutieswereimposedonsubjecttyresimportsforathreeyearperiodintheamountof35percentadvaloreminthefirstyear,30percentadvaloreminthesecondyearand25percentadvaloreminthethirdyear(thetyresmeasure).Thismea