US faces limited options in trade fight with China
Time is GMT + 8 hours
Posted: 19-Feb-2014
TODAYonline
Workers at the Ningbo Silk Trend garment factory go about their chores, in the eastern Chinese port city of Ningbo. To appease constituents facing job losses in America’s industrial heartlands, US lawmakers have proposed legislation to downgrade trade relations with China and impose punitive tariffs on Chinese goods, but analysts say Washington’s options are limited
Reminiscent of 1980s Japan-bashing, Washington is revving up criticism of China to rectify a burgeoning trade deficit, but its options are limited and any retaliatory actions could backfire, analysts say.
To appease constituents facing job losses in America’s industrial heartlands, US lawmakers have proposed legislation to downgrade trade relations with China and impose punitive tariffs on Chinese goods flooding the United States.
The Bush administration, in an unprecedented move last week, announced the setting up of a task force that will specifically monitor China’s compliance with its global trade obligations.
They include Beijing’s enforcement of intellectual property rights, freeing up
certain domestic industries and fulfilling market-opening commitments — all of which were blamed for fuelling the record US trade deficit with China of more than 200 billion dollars.
Another reason cited was alleged Chinese government action to keep its yuan currency artificially weak to boost exports.
Speculation is mounting that the administration is considering branding China a currency manipulator in April, when Chinese President Hu Jintao is scheduled to visit Washington for talks with President George W. Bush.
The US Treasury Department is reportedly sounding out investors and experts about how financial markets might react to such a move.
Under a 1988 law, the Treasury is
