What Happens When You Don’t Listen

 

‘Tis our true policy to steer clear of permanent alliances with any portion of the foreign world; so far, I mean, as we are now at liberty to do it; for let me not be understood as capable of patronizing infidelity to existing engagements. I hold the maxim no less applicable to public than to private affairs, that honesty is always the best policy. I repeat it, therefore, let those engagements be observed in their genuine sense. But, in my opinion, it is unnecessary and would be unwise to extend them. ————-George Washington

There can be no greater error than to expect or calculate upon real favors from nation to nation. ——– George Washington

It is our true policy to steer clear of permanent alliances with any portion of the foreign world.———–  George Washington

China says US violates WTO on renewable energy

China said Thursday that several US policies supporting the American renewable energy industries violate World Trade Organization rules.

Six different measures introduced by the US government in the renewable energy sector are in breach of WTO regulations, the ministry of commerce said in a statement on its website.

The announcement came a week after a US decision to slap hefty anti-dumping duties on Chinese solar cell makers.

The US Commerce Department imposed levies of between 31 and 250 percent on Chinese producers and exporters after saying it had found they sold solar cells in the United States at artificially low prices, known as dumping.

China’s commerce ministry, which did not go into detail about which US policies it was referring to, said it had started an investigation of US practices last November at the request of local industry associations.

So, now we’re in a piss fight with China.  This will likely go before a judge in some sort of arbitration.  If we hadn’t joined the WTO and entered these undecipherable trade agreements, we would be unfettered to act in U.S. interest alone.  Trade agreements should consist of just a few words….to wit…..   “We’ll sell you our wares at the prices we determine.  And, we’ll buy your wares, until we deem it unfruitful for us to do so.”

This entry was posted in Economics, News and politics. Bookmark the permalink.

3 Responses to What Happens When You Don’t Listen

  1. kelly liddle says:

    Things are a bit more simple than that. US prints things called bonds, Chinese work hard and give the US goods. Same applies to mid east. It will probably end bad for all concerned the only question being how bad. I am sure the Chinese assertion is correct as there are plenty of green subsidy schemes.

    • DirkH says:

      Things are actually more complicated. The Chinese are keeping their currency pegged to the Dollar at an artificially low value. They allowed a rise of 6.5 % per year over the last few years but have stopped that a few months ago, fearing that their exports would suffer if they continue to let it rise (their growth sputters ATM).

      The WTO treaties ONLY make sense when there IS no currency manipulation – tariffs are what you do to protect your country against such artificial valuations. The WTO forbids import tariffs, AND accordingly, it also forbids currency manipulations.

      The Chinese are in clear violation of that.

      • kelly liddle says:

        Dirk
        You might as well call the whole world currency manipulators as that is what reserve banks do. If you say the USD is overvalued then I agree but that is what you get for being the world reserve currency. Other countries in Asia compete with China ok so must mean their currencies are too low too. The big problem is that the US owes everyone money as it is used as a reserve and if the value goes down then the reserves are worth less. Better to look at what is wrong internally in the US than to blame other countries. Consider the fact that the US is an inefficient welfare state and China has almost no welfare. Could this be the cause of some of your problems? Also remember a decent devaluation of the USD means much higher oil prices , electronics etc.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s