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Old 10-29-2009, 02:44 PM   #1
AVANTI R5
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Default China considering import duties for American cars

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China has notified the United States that it intends to launch an investigation that would potentially impose new import duties on vehicles manufactured by GM, Ford and Chrysler if imported into China.

According to Steve Collins, president of the American Automotive Policy Council, the three Detroit automakers currently import approximately 9,000 vehicles each year to China.

China first declared that it would launch an investigation into the addition of new import duties on American automotive imports after President Barack Obama announced that he would be imposing a 35 percent tariff on Chinese-made tires.

Collins told Reuters, “The documents containing the charges were presented by China to the US government this week, but have not yet been translated. Therefore we are not in a position to comment on the matter at this time.”

Currently there are high-level talks taking place in Hangzhou, and President Obama is expected to visit China in November.

Collins expects China to formally launch an anti-dumping and countervailing-duty investigation next week
http://www.leftlanenews.com/china-co...ican-cars.html
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Old 10-29-2009, 02:58 PM   #2
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I don't see this as a big deal. The US manufacturers are already building cars in China under Chinese subsidiary and partner brands, and those aren't "imported".
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Old 10-29-2009, 05:10 PM   #3
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Yeah, the volume is so small... If they do it, just raise the tire tariffs even higher in retaliation. This is a game that the Chinese can't win. There are Chinese car companies making knock-offs of every popular car model, in any case. The most memorable are the knock off minis... I was only totally convinced it wasn't real when I saw that the speedo wasn't in the center console.
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Old 11-02-2009, 02:52 PM   #4
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...This is a game that the Chinese can't win...
Yea, you just keep telling yourself that...this doesn't have to be limited to the car market.
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Old 11-02-2009, 03:07 PM   #5
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I thought they had tariff taxes already on imported cars. I know the japanese cars had a big tax on them to be imported before as well.
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Old 11-02-2009, 03:49 PM   #6
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Yea, you just keep telling yourself that...this doesn't have to be limited to the car market.
Which is why it could hurt them more.
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Old 11-02-2009, 03:56 PM   #7
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all this for 9k cars.

Nick
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Old 11-02-2009, 05:49 PM   #8
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Originally Posted by White out View Post
all this for 9k cars.

Nick

I'm sure you realize though that this isn't about 9000 cars. They couldn't care less about those 9000 cars. They are trying to play hardball with us because of this (stupid, campaign donation driven) tire tarrif. They are trying to hit us where it hurts knowing full well the state of our automotive industry at the moment.

They are trying to feel us out. We could have the upper hand if we started to do this on more of their goods, but unfortunately, this would now probably hurt us just as much considering the overwhelming amounts of goods and whatnot that they now supply to and for American businesses.

The Chinese are not dumb. They've got us by the balls. They make everything, they own huge parts of the US. And if we think we can get tough with them, we better understand that it can and will get very bad. China could in theory seize all US owned facilites/factories/etc in China and turn them over to the government if they felt the need. And I wouldn't necessarily put it past them...

If we're going to get tough, we need to do it right. A tariff on tires was half-assed and dumb. If the powers that be decide a tariff is needed, then so be it, but it should be across the board.
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Old 11-02-2009, 07:59 PM   #9
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Which is why it could hurt them more.
They make most of stuff sold in the US; we make virtually nothing that they buy. Tax for tax, our prices will shoot up a lot more than theirs will.
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Old 11-02-2009, 08:02 PM   #10
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China is the fastest growing vehicle market in the world. 9,000 units currently being exported is irrelevant.
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Old 11-02-2009, 08:31 PM   #11
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China, the new sleeping giant?
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Old 11-02-2009, 10:20 PM   #12
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Originally Posted by Chin View Post
Yea, you just keep telling yourself that...this doesn't have to be limited to the car market.
What warpath said...

The trade deficit we have with China would boggle your mind. They depend on us as a trading partner MUCH more than we depend on them. We buy things from them...they don't want us to stop buying those things from them. They know that if they stopped selling us cheap, plastic crap, we'd just start making our own cheap, plastic crap... That's why they DON'T like the tire duties!

Like I said. This is a game that they can not win.
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Old 11-02-2009, 10:26 PM   #13
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Originally Posted by SlideWRX View Post
They make most of stuff sold in the US; we make virtually nothing that they buy. Tax for tax, our prices will shoot up a lot more than theirs will.
Duties aren't a tax to you and me. They end up being reflected in the price that you pay. If Chinese tires end up being more expensive, you'll just buy the American or Mexican or Name-a-country made tire alternative. This goes for everything they export to us. If we keep raising the duties on their exports to the US, nobody here will buy the goods, because the prices aren't competitive. We'll just buy stuff made in other countries or even made here. We hardly export any consumer goods to China.
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Old 11-03-2009, 02:25 PM   #14
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Originally Posted by Quint View Post
What warpath said...

The trade deficit we have with China would boggle your mind. They depend on us as a trading partner MUCH more than we depend on them. We buy things from them...they don't want us to stop buying those things from them. They know that if they stopped selling us cheap, plastic crap, we'd just start making our own cheap, plastic crap... That's why they DON'T like the tire duties!

Like I said. This is a game that they can not win.
I repeat, you just keep telling yourself that...
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Old 11-03-2009, 03:19 PM   #15
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I repeat, you just keep telling yourself that...
Quint is correct.

In a trade war, China has a lot more to lose than we do. A LOT. Remember, China is a net exporter. That means they have more capacity than there is demand domestically for their products.

A trade war means millions of out of work Chinese, a perfect petri dish for the kind of civil unrest which threatens the ChiComs. They would much rather continue business as usual than to have to have soldiers and tanks in the streets mowing down workers by the thousands.

We can replace their productive output and as the recent actions of the Fed hae shown, we can go without their buying our debt if absolutely necessary.

The bottom line is this, China has been getting a free ride on the coattails of the industrialized West in the sense that it hasn't been forced to grow domestic demand for its products and it hasn't had to compete on a level playing field in terms of human rights and environmental safeguards.

The next decade is going to see a renegotiation of that deal .
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Old 11-03-2009, 04:13 PM   #16
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I think that the United States should treat cars from foreign lands the same way they do ours. If they let them in, we let theirs in. If they tariff ours, we tariff theirs. The Koreans and Japanese heavily tax American made cars in their own lands, the fact that we didn't put our foot down with them means that the Chinese know they can play hardball with the U.S. and that we'll roll over.
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Old 11-03-2009, 09:20 PM   #17
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I remember when Clinton was going to slap an import tax on Japanese cars in the mid 90's that would have doubled the price of the car. People could argue that by not allowing imports to flow freely into our country that we would become isolationists. I'm wishy washy on this because as American consumers we want the cheapest prices and Corporations want the most margin. Capitalism at work. We have plenty of open jobs in this country, but alas our citizens are having a tough time meeting educational benchmarks for science driven business. Overall america is math dumb and our best technologies are being figured out and produced at next to nothing prices. The American dream is changing and in the next 2 generations we will see a strong possibility of losing the edge as the economic hub of the world. We are still in a position to demand what a foreign company will pay to do business in America. Conversly, we better start getting this countries rectal-cranial inversion straightened out.
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