Trade war between US&China

1. Trade war between US&China Present Chayun Tantivasadakarn By Chatwich Chatchaiwatkul 5004640149 Kandanai Chotikapracal 5004640370

2. Trade war between US&China • Recently, there has been a conflict between US&China about the tariff rate. • Tires Trade • Frozen Chicken • Solar panel

3. Table forecast of US 2003 2004 2005 2006 2007 2008 2009 2010 Merchandise Trade Exports Actual 724.4 818.3 908.4 1032.1 1149.2 1291.3 — — Forecasted — — — — — — 1,035.1 1,025.0 Imports Actual 1284.0 1499.5 1705.3 1882.7 1985.2 2,112.5 — — Forecasted — — — — — — 1,489.9 1,661.9 Trade Balance Actual -550.9 -669.6 -787.1 -838.3 -819.4 -821.2 — — Forecasted — — — — — — -429.9 -581.8

4. Tired Trade

5. MSNBC.comSaturday, September 12,2009 • The President Obama announced to impose a tariff on tires from China. • Since there are 5,000 jobs have been lost over the past five years and in 2006 and 2007, U.S. four tire plant closed and three more are closing in this year.

6. MSNBC.comSaturday, September 12,2009 • Obama settled the tires tariff rate at an extra 35 percent in the first year, 30 percent in the second year, and 25 percent in the third. • G20 have made a strong statements critical of countries that US protect their key industries.

7. Frozen Chicken

8. Solar Panel

9. businessweek.comMonday, October 12, 2009 • The US customs decision is dividing the industry between importers and companies that produce solar equipment in the United States. And with China accounting for a rising share of American imports, the tariff could become a sticking point in bilateral trade relations already troubled by the dispute over tires, autos and chicken parts. • The United States exported almost as much solar panel equipment as it imported in the first seven months of this year — $605 million in imports and $555 million in exports, according to Commerce Department data.

10. businessweek.comMonday, October 12, 2009 • Due to President Obama’s announcement of 35% tariff on automobile tires imported from, the sudden decision to place a 2.5% tariff on imports is legally binding on most solar panels imported into the United States. But virtually no one in the industry became aware of it until just recently. Meanwhile, unpaid duties piled up, along with penalties that are likely to double the cost.

11. businessweek.comMonday, October 12, 2009 • companies that import solar panels to the United States are facing up to $70 million in unexpected tariff. The bill comes at a time when the industry is already struggling and could hurt both foreign solar panel makers and foreign and American distributors. • The US Solar Energy Industries Association estimates that by achieving a goal of 12.5 percent of electricity generation to come from solar by 2020, 1.5 million new jobs in the solar industry will be created.

12. businessweek.comMonday, October 12, 2009 • However, many panel manufacturers are losing money due to fierce competition from ever-expanding production in China and a worldwide downturn that has driven down prices. • Raising prices to cover past tariffs will be hard because the market is glutted with panels; prices have fallen a fifth since early this year.

13. Analyze • The state benefits from solar directly since most of the money spent goes toward the building materials and equipment produced and installed by Arizona companies thereby staying in the State. • therefore the money will flow inside the US.

14. Anti-protectionist statement • Beijing says the duties would be a violation of global free-trade principles and has complained about U.S. protectionism. • Roy Littlefield said ‘it would not save American jobs but only cause tire manufacturers to move production to another country with less strict environment and safety controls, less active unions and lower costs than United States.’

15. Politics from impose the tariff • The tire dispute threatens an economic relationship crucial to China’s economic growth. • There would potentially spark a dangerous trade war. • Moreover, China gov’t also could sell some of its extensive holdings of U.S. Treasury debt.

17. Table

18. Model Tire (Labour) Solar panel (Capitalist)

19. Conclusion • As the effect of this situation, jobs will be more provided for US citizens as we conclude by analyzing the model • But as China, jobs will be decline as well as causing the excess supply in both tires and solar panel industries.

20. Reference • http://www.uschina.org/statistics/tradetable.html • http://www.usitc.gov/tata/hts/ • http://www.nytimes.com/2009/10/01/business/global/01tariff.html?_r=1 • http://www.reuters.com/article/pressRelease/idUS10038+17-Jun-2008+BW20080617 • http://www.bharatbook.com/Market-Research-Reports/Research-Report-on-Chinese-Tire-Export.html • http://www.bjreview.com.cn/world/txt/2009-09/22/content_218058.htm • http://www.msnbc.msn.com/id/32808731/ns/business-world_business/ • http://www.bloomberg.com/apps/news?pid=20601103&sid=aqVCDzPQt8eg • http://www.washingtonpost.com/wp-dyn/content/article/2009/09/11/AR2009091103957.html • http://www.foxnews.com/politics/2009/09/11/obama-administration-slaps-tariffs-chinese-auto-imports/ • http://thehill.com/homenews/news/58383-obama-hits-china-with-tariffs-on-tires

21. Thank you For YouR Attention