Saturday, October 07, 2006

China! China! China!

This will be my last post for about 10 days as I'll be traveling on business for the next week. This also explains my 'light posting' in the last week as I've been preparing for my trip.

As I was browsing the news, this caught my eye because the EU is also having problems with the ever-growing trade imbalances...

China Threatens To Retaliate After EU Agrees To Impose Financial Penalties On Chinese Shoe Exports To Europe

(RTTNews) - Under pressure from manufacturers, the EU has accused China of "dumping" shoes in Europe at less than market prices and imposed a tariff of 16.5% on leather shoes imported from China over the next two years, reports BBC.

"The European anti-dumping measures on Chinese leather shoes lack any legal or factual basis and damage the Chinese companies' legitimate rights," Chong Quan, spokesman for China's Commerce Ministry, said.

Shoe manufacturers from Vietnam also have been critical of the EU's move saying almost 70 thousand jobs in the sector would be threatened.

Beijing said the tariff, approved by one vote, was legally "defective" and not in accord with global trade rules. Beijing while protesting the move said the tariff is not in line with WTO or EU law.

China said it would review the situation and warned that it reserved the right to take "corresponding measures". China exports more than one billion shoes to EU countries.

I think what disturbs me the most is the EU's reaction. Undoubtedly, they're going to take it in the %#@ while China keeps cashing the checks. The US definitely has a problem with it's financial relationship with Red China but it seems as if the EU's is just as bad.

For every pair of shoes we buy, inevitably we're arming one more Chinese soldier.


merge said...

There is another underlying issue in all this that makes it harder to fight. A lot of corporations, a long time ago, seen that China was going to be an unlimited labor pool, much like Mexico was at one time, and in an effort to counter competition, set up a ton of factories over there. These corporations are what's fueling the drive for chinese products with there overwhelming lobby power. The only way to counteract this is to try, wherever possible, to get people to pay attention to what there buying. The western corporations(USA/CAN), have to much money invested over there, and would, and are fighting like hell to keep tariffs out of the mix. As it is now, they want the existing ones removed.

This so called global market is ultimately going to get us pushed into the ditch with these third world countries dumping all profits into arms. The original intent was to better the peoples lives and encourage them to build sustainable industries, using Japan as the model, but countries with regimes, dictators and corrupt governments, will never move into the modern fold while they still seek domination and oppression of the people.

Gayle said...

Dang! I don't think Merge ever left a comment on my blog that long! But I was going to say the same thing, only a bit more succinctly!

People need to stop buying crap made in China! :)

Gayle said...

By the way... you will be missed!

merge said...

LOL... sorry Gayle... the China topic kind of gets me going... ;-)

Neo-Con Tastic said...

Wow, I'm kind of impressed. MR went to town on his comments. LOL

The thing is - you're right on all accounts, that's the scary part.

If it were so easy Gayle...

Well, I've just finished packing and am ready to hit the West Coast. I'll be back.

Gayle said...

I sincerely hope you will be back!

Stay safe and well, Mr. Tastic. Let us know when you return. :)

Gayle said...

Urk! I just had a terrible thought. You are going to the west coast. You will be outnumbered by liberals. Oooooh! You poor thing! I hope you return in your right mind! ;)

highboy said...

China is playing the same games Japan did in the 80s, knowing full well that no one will do anything about it.

Try not to turn tree hugger while you're out there.