Forbes – Just two days after the U.S. slapped Chinese tire imports with hefty tariffs, Beijing has hit back by saying it would launch an anti-dumping investigation into automobile and chicken products from the U.S.
China’s Commerce ministry said Sunday that the probe was in response to complaints from local manufacturers that claim some products from the U.S. have an unfair advantage. At the same time, Beijing condemned protectionist policies adopted elsewhere.
The "protectionist" policy that seems to have triggered the Chinese tit-for-tat investigation was an order signed on Friday by President Barack Obama that imposes a 35% tariff on tires imported from China on top of the existing import duty of 4%.
An editorial in Monday’s edition of the China Daily newspaper, which is widely viewed as a mouthpiece for Beijing, labeled the tariffs as "irresponsible" and also warned of the possibility of severe consequences, such as a chain reaction of protectionist trade measures that would slow the pace of the global recovery.
The escalating trade row comes against the backdrop of preparations for the next G-20 summit in Pittsburgh on Sept. 24-25, when leaders from the world’s twenty most powerful economies are scheduled to meet. In addition, President Obama is planning to visit China in mid-November.
Less than one year ago, many of the same world leaders were holding emergency meetings to devise measures to jump-start their respective economies. A popular catchphrase at the time was a pledge to resist the temptation of adopting protectionist policies that would curb international trade and undermine the global recovery.
