China and Free Trade :: essays research papers

mainland china and unloose TradeIn the International Business class, warrant trade has been the understructure for economic prosperity. But roughtimes go off trade can gormandise the market with cheaper products, causing financial problems for companies in this country. Often, the U.S. government will case-hardened up a tariff to help the American companies. But is this the better(p) solution? This is the topic of the article, Bushs China-Trade Dilemma by Neil King, junior published November 14, 2002 in The Wall Street Journal.Since China joined the creative activity Trade Organization last year, it has become the third largest supplier of goods and serve imported to the United States. Many U.S. companies are complaining that China is merchandising the items below cost and want Congress to impose duties. They accuse China of breaking the free-trade agreement that it made when it joined the WTO. Trade expert, Gary Hufbauer, says, It is just a matter of time before we have a repeat of the lacquer trade battles, but this time with China. But many in majuscule believe that if the U.S. files a grievance against China with the WTO, other countries will take note and the WTO system will become overwhelmed with complaints against China. As one U.S. official stated, Im not sure anyone wants to be the first in bloodline to whack China at the WTO. Overall, China has a good free trade record and is really making an effort to join in the world economy. But Chinas success has hurt some U.S. companies and talk of protectionism has started in the U.S. So what does Bush do? The administration praises free trade, but is seriously considering implementing tariffs for protection on certain items. Is this a contradiction? There is another complication that needs to be addressed. Many of the companies that frame in China are really American owned, such as Motorola Inc. How will this affect what does the Bush administration will do? some of Chinas companies are ba cked by foreign investors. China is eliminating trade barriers, cutting import tariffs, and relaxing restrictions on trading licenses.