Global Trade: FedEx (NYSE:FDX) Slashes Profits; US and China File Cases Against Each Other With WTO
By Alex Brokaw Sep 20, 2012 4:35 pm
Plus, reported trade statistics from across the globe, and more.
US, China File Trade Cases Against Each Other With WTO
Trade tensions between the world's first and second largest economies have strained as the United States has accused China of illegally subsidizing auto exports, and China has challenged the anti-dumping duties amounting to $7.2 billion of Chinese goods put in place by the United States. The Obama administration authorized the US to file a complaint -- its ninth against China -- with the WTO this Monday.
However, on Monday as well, China beat the US to the punch, officially submitting their complaint against US tariffs on over 30 different types of Chinese-made goods, which include steel, paper, and kitchen appliances.
As NBC News' The Bottom Line points out:
China and the US began squabbling over trade – and backing up the dispute with tit-for-tat sanctions – earlier this year. But the debate has been heating up for a number of years, especially over concerns about China's lackadaisical attitude towards American intellectual property.
In regards to intellectual property, this summer, Ford (NYSE:F) successfully blocked China's JAC 4R3 pickup truck, a near-identical clone of Ford's iconic F-150, from rolling off production lines. Speaking with Autoline, a dedicated source for auto industry and product news, Ford's CEO of Global Technology and Intellectual Property Chief Bill Coughlin said that because patents are country specific, Ford has had to build a large "portfolio" of patents in China.
Recently, China has been revving up its auto exports to the US, as domestic auto sales in China have slumped. The dependence on global sales for one of China's most crucial industries is higher than ever.
In related news, Japan and China's row over over the sovereignty of islands in the East China Sea has taken a toll on Japanese automakers Toyota (NYSE:TM), Honda (NYSE:HMC), and Nissan (PINK:NSANY), who have been forced to shut down plants and suspend production in China due to protests.
(See also: For Japanese Automakers, China Dispute Might Be Worse Than Tsunami.)
No positions in stocks mentioned.
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