Tires off er clues into Obama's dream of change
- Source: Global Times
- [22:20 August 09 2009]
- Comments
Illustration: Liu Rui
“China is toxic in the US,” an American lawyer busy with lobbying work between Beijing and Washington said to me during our first meeting. It was a debatable choice of words, but that adjective does vividly describe the level of anxiety the US has about China. Therefore, one can imagine the courage needed to alter that perception, particularly for politicians on the other side of the Pacific.
Now, possibly one can read some indicators about the Obama administration’s courage for “change,” one of its strongest campaign slogans, as the White House weights on the currently brewing tug of war between China’s tire manufacturing industry and the United Steelworkers (USW).
The story goes like this: the USW sought a cap on the number of passenger- vehicle tires that can be imported from China annually, saying it could save domestic jobs.
It filed the case in April with the US International Trade Commission (ITC), which later determined that surging low cost consumer tire imports from China damaged the domestic industry with lost jobs and factory shutdowns.
Consequently, the ITC issued a June recommendation to push up tariffs to up to 55 percent on Chinese passenger and light truck tires. Many believe tariffs as high as that will push the Chinese tires out of the US market.
Last week, at a request of the USW, a Chinese delegation comprising tire makers and industry representatives attended a hearing of the US Trade Representative (USTR), and presented a range of arguments against the case.
Now, the case is on the table of the US President Barack Obama, without whose approval the duties can never be levied. All eyes are set on the White House for the fi nal decision.
The time is limited. He must decide by September 17, a week before he is scheduled to host Chinese President Hu Jintao in Pittsburgh at a gathering of leaders from the group of 20 industrialized and developing nations.
Many believe the decision could be a test of the White House’s policy on trade between China and the US.
But, obviously, its significance is much more than that. Instead of being just about Washington and Beijing, it is the first major test trial of the White House’s trade policy worldwide.
This might seem overexaggerated, but this is a crucial issue. Since he moved into the White House, President Obama has sent conflicting signals on trade.
For example, he has warned against policies that “send a protectionist message” and criticized trade barriers, saying they “hurt us all in the end.”
But the administration has also ignored complaints over the “Buy American” policy. People are confused which label to put on him: a free-trade president or a protectionist president?
Now, unlike the Buy American provisions in the $787 billion stimulus package, which Congress passed over the president’s objections, this decision on tire imports is entirely in Obama’s power to control, and will show his attitudes toward free trade.
In addition, during his presidential campaign, Obama advocated “Change We Believe In,” which won the hearts of the American people. But the question is: what kind of change does the US need? Is it mere rote change or a smart change?
During the Bush administration, the ITC recommended tariffs or quotas on products from China in four cases, but each time President George W. Bush rejected the guidance, whatever goods were involved.
Now, Obama might merely be against whatever Bush was for, but he can also choose smart change, moving from campaign promises to the ultimate national interest of the US.
Picking a fight with ‘toxic’ China might play well during the Democratic primaries with some interest groups, but today it would certainly cast a shadow over joint efforts of the two countries to revive the global economy.
Let’s hope that Obama opts for the smart choice.
Tian Wei is the host of “Dialogue” on CCTV's English Channel, and the main anchor of CCTV's special coverage of important domestic and international events. Previously, Tian worked in Washington D.C. as a correspondent, and covered the wars in Iraq and Afghanistan. Her blog is http://blog.cctv.com/html/09/960109.html. Reach her at tianwei.gt@gmail.com
