• Aug 31, 2009
Chinese-market 2010 Buick Regal – Click above for high-res image gallery

China joined the World Trade Organization in 2001, at which point it was given five years to adjust to the rules of open trade before any complaints were lodged against it. On schedule, in 2006, the complaints began, lodged by the U.S., Europe, and Canada.

In one example of open trade prohibitive practices, Automotive News reports that if a car built in China uses a percentage of imported auto parts above a specific threshold, China taxes each imported part an additional 25%. In such a price-competitive atmosphere, such a policy all but proscribes the use of imported parts, a move that has lead to complaints from all three continents.

The original complaint was decided at the end of last year in a ruling against China. Beijing appealed, to no avail. In response, China has rescinded the tax, which is an initial step to truly opening the market up for foreign parts- and automakers.

The U.S. trade in auto parts to China is not even 1/13th what it is to Mexico, a statistic that a host of companies would clearly like to change.



[Source: Automotive News, sub req'd]


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    • 1 Second Ago
  • 14 Comments
      • 5 Years Ago
      @Mike!!ekiM: why only do the same tariff? let's do a gazillion percent on all the Chinese built cars that come to the US ,like....errr.... which Chinese cars are sold in the US?
      • 5 Years Ago
      On a semi-related topic... does Consumer Reports know something that we don't? I'm reading their latest issue, and told that the Buick Regal will make its way state side.

      True or false?
      • 5 Years Ago
      meh!
      • 5 Years Ago
      Game Theory has a simple solution to these kind of trade measures. It's got the sophisticated name of Tit-for-Tat. It works like this, ( I know you know, I like to type ), We will simply MATCH your Import Tariff. If they have a 50% tariff on US auto imports, we likewise pass a 50% Import tariff on Chinese cars.

      Why US Economists, prostitutes to the Pseudo Aristocracy, keep their lips sealed tight about this strategy. You don't need to jawbone tariffs down, you simply mimic their actions.

      It's almost as if the Upper Case likes the idea of the US as China's newest, richest, colony.

      stealthebeatles
      • 5 Years Ago
      Meanwhile, men hidden in a room in Beijing think of new, less obvious ways to stifle foreign competition.
      • 5 Years Ago
      "...a move that has lead to complaints from all three continents."

      Sorry to be a grammar nazi but it's spelled led. The lead that sounds like led is that stuff in pencils, or periodically represented as Pb.
      • 5 Years Ago
      As an added site effect that will never occur to the Chinese leadership, cars in China will become safer due to the usage of parts from countries that actually have quality control and consumer safety laws.
      • 5 Years Ago
      china wants more
        • 5 Years Ago
        Communism never truly existed on a national scale.

        Anyway, that doesn't change the fact that the PRC is still an authoritarian oligarchy.
        • 5 Years Ago
        open market! blow on communism!

        http://www.indianautotalk.com
        • 5 Years Ago
        This continues to show that China is now becoming a top consumer as well as a top producer.
      • 5 Years Ago
      "In such a price-competitive atmosphere, such a policy all but proscribes the use of imported parts, a move that has lead to complaints from all three continents."

      Three continents... Europe (thats one). US (thats two). And Canada? Am I missing something?
        • 5 Years Ago
        Yeah were big. But not that big. Don't think we are allowed to be our own continent. We remain Americans (citizens of the continents jointly called the Americas) or North Americans if you prefer.
        • 5 Years Ago
        Asia consists of more than just China.
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