Let’s have a trade war! Or, what to do when you tire of chicken…

So we now have a brewing trade row over Chinese tires and American chickens:

“China announced dumping and subsidy probes of chicken and auto products from the U.S., two days after President Barack Obama imposed tariffs on tires from the Asian nation.

Chinese industries complain that they’re being hurt by ‘unfair trade practices,’ the nation’s Ministry of Commerce said on its Web site yesterday. The dumping investigation relates to poultry alone, a spokesman said in Beijing today. The ministry didn’t specify the value of imports of the products.”

This is something of a daring move on the part of the American administration, given that China is the largest buyer of USA debt, and thus underwrites Washington’s spending. And the Chinese are none too comfortable occupying this space these days. Ditto for the rest of the USA’s creditors. I am sure there are plenty of valid arguments on both sides of the issue (Chinese tires don’t exactly have a sterling reputation), but the timing is curious. The Obama administration has based its agenda on deficit spending and has to know that the PRC government is mighty uncomfortable providing the financing. A more conciliatory American posture would be expected.

That said, sourcing in China will continue – it has to, with the so many USA firms no longer in business – and if you need to source in China, you need a partner who can help you navigate the waters and protect you from shoddy product. PassageMaker acts as a “Black Box” to protect your Intellect Property and a “Quality Gate” to make sure you get the product you ordered.

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