China, rather than holding its own in trade negotiations with the United States as the Wilbur Ross team stands up to the dumping of cheap junk that nation has been doing for decades, has decided to take refuge in a World Trade Organization ruling against the United States that essentially has the world telling the Trump Administration that we may not look after our own best interests.
China’s WTO request cites Washington’s non-compliance with a ruling in a dispute over U.S. dumping duties. It is likely to lead to years of legal wrangling over the case for sanctions.
China will seek authorization at a special meeting of the WTO’s Dispute Settlement Body on Friday September 21.
The ruling itself was made in 2013. China objected then to the United States imposing duties on goods that were determined to be “dumped” into the US market, the largest in the world, of substandard junk that undercut the price of American goods. Now that the Trump Administration is putting additional duties on industrial goods, as well as taking a hard line on intellectual property which is not a priority in Chinese culture, Beijing sees that its cash tiger is dying and is trying to get the globalists to help them stay afloat the easy way. President Trump, though, will not simply roll over and play dead for them.
The Asian nation initiated the dispute in 2013, complaining about U.S. dumping duties related to several industries including machinery and electronics, light industry, metals, and minerals — with an annual export value of up to $8.4 billion.
The case concerns the U.S. Commerce Department’s process of calculating the amount of “dumping,” which refers to Chinese exports that are priced to undercut American-made goods on the U.S. market.
The U.S. calculating method was found to have been illegal in a string of trade disputes brought to the global trade regulator over recent years. Trump has since warned the world’s largest economy could soon withdraw from the WTO if “they don’t shape up.”
Withdrawing from that obvious trade trap is something we should have done long ago. The world has long thought of the United States as its piggy bank. As President Trump put it, no more. America first. Time to ditch all the “multi-lateral” global trade agreements.