In the latest news with China and the U.S., China is going after the United States for $2.4 billion in retaliatory sanctions. China claims the U.S. failed to comply with the World Trade Organization ruling in a global trade body in which the White House had complaints.
The case dates back to the Obama administration and will be reviewed by the WTO Dispute Settlement Body. It seems as though Obama had messed up quite a bit of political business deals with China, and President Trump has to take the blame and clean it up.
The WTO appeals judges stated in July the U.S. was not fully compliant with tariffs, which was put on solar panels, steel cylinders, and wind towers from China. The appeals courts stated Beijing has the right to place sanctions on the U.S. if Washington does not remove them.
Washington is challenging the WTO ruling on the case, and they also have the right to dispute the sanctions which China seeks to place on the U.S. The case was sent to arbitration. The Trump administration, according to Reuters, is “pushing the WTO to revamp rules allowing China to call itself a ‘developing country,’ battles Beijing in a wider trade war. U.S. officials argue China benefits from easier treatment at the WTO while subsidizing manufactured goods and dumping them on world markets.”
The green light came from the WTO’s dispute body in mid-August of this year to seek sanctions. The U.S. officials stated, “At the time that it did not view the WTO findings as valid and that the judges had applied the wrong legal interpretation in this dispute and that China continued to be the serial offender of the WTO’s subsidies agreement.”
Alan Wolff, deputy director-general of the WTO, stated he is convinced of the WTO relevance and that the dispute will be resolved over time. He said, “The WTO can’t prevent a trade war, but it can be part of the solution. There may be difficult times ahead, but ultimately the trading system will survive and be improved.”
There were 17 total investigations started by the U.S. Department of Commerce between 2007 and 2012. In 2012, China went to the WTO, challenging the U.S. anti-subsidy tariffs. These tariffs are also known as countervailing duties and are valued during those years at $7.3 billion.
The office of U.S. Trade Representative (USTR) Robert Lighthizer stated, “The WTO ruling recognized that the United States had proved that China used state-owned enterprises to subsidize and distort its economy. The ruling also said the United States must accept Chinese prices to measure subsidies, even though USTR viewed those prices as distorted.”
Over the last 15 months, there have been tariffs being thrown between the United States and China, which has put a strain on financial markets and drastically slowed down global economic growth.
Reuters reported, “U.S. President Donald Trump said on Monday that work on a U.S.-China trade agreement was coming along well. On Friday, he said a trade deal between the world’s two largest economies will be signed by the time the Asia-Pacific Economic Cooperation meetings take place in Chile on Nov. 16 and 17.”
There have been multiple criticism remarks on how President Trump is handling this trade deal. If people gave our president time to work out the kinks, they would see he really does know what he is doing.
Trump is a strategic businessman and knows how to handle China. President Trump has been all over the world and has not met a person he cannot persuade in seeing things his way. Yes, it was a rocky and bumpy road that led us to this point.
It takes time to repair all the damage the Democrats have caused. Farmers were angry in the beginning. Still, things are leveling off as we move closer to the upcoming meetings in Chile during November.
Dating back, we see it is Obama who created all of this mess, and the Democrats do not want people knowing how bad he failed us here in America. As President Trump succeeds, it proves how far astray the Democrats have led this country.
The main thing people need to remember is everyone has a right to worry and be on edge at times when business deals like this take place. The farmers and manufacturers it has affected directly. Patience is the key to great business deals, and President Trump is the man with the plan.