The trade war

Chinese Tire Tariff and Chinese Chicken Feet articles are  both talked about the antidumping issues. 

In 2009, President Obama announced tariffs increased to 35% on tire imports from China. It's broke 

China tire producer's heart. President Obama decided  increased tire tariffs for protect the domestic relative 

tire industry. In fact, China become the main antidumping country of the world in recent years. Many 

country increasing tariffs to limit China both import and export product. Why China's import and export 

always are low price? Most of products that I have ever seen are made in China! Only because the cheap 

labor cost  in China? 

I realized that America people didn't ate chicken feet when I came to the United States. They think 

chicken feet are a lowly thing. However, most Asia people eat chicken feet, especially in Chinese 

mainland. We like to eat chicken feet because the meat on the bone are very delicious. Chicken farmers of 

America found that the chicken feet had a huge market value in China. In 2008, the U.S. exported $677 

million worth of chicken to China. Actually, U.S. exports chicken feet to China is a good thing for both of 

country. Nevertheless, it's ended by China imposed antidumping tariffs from 43.1% to 105.4% on 

imports of chicken parts in 2010. Some people thought the chicken feet event were the China revenge 

for the tire tariff of America. I think every country do the tariff adjustment because they are trying to 

protect their own economy. The trade war will never end between countries.  

Are all barriers on trade intentional?

Nations protect domestic certain industries by so many ways. Increasing tariffs is an main effectively
process from other countries. Protective tariff not only can reduce the amount of imports entering a country, also increase sales for domestic producers. On the other hand, nations like to use increasing
tariffs to solve the antidumping problems.

Indeed, there were some barriers on trade  were unintentionally. For example, war on terror is an terribly
negative unintentionally barriers on trade. The famous war on terror was 9.11 event ten years ago. 9.11
event created particular adverse effect to America economy. First of all, investors lost their trust for
America economy market. They thought America was not a safe place to invested anymore. In addition, the United States utilized a large number of domestic resources to the war against terrorism after 9.11 event. Then, Military expenditures and national debt of America has increased rapidly. The war on terror makes a heavy blow to America's economy.

In China, the war on terror occurred in the north western province of Xinjiang. The terrorists those who are fighting for an independent state was uighur separatists.  Uighur separatists keep separatism many years because they believe they are different between us. Uighur take different language and culture that make them special, but it's not means they are not Chinese. Uighur fought people who are not uighur, and vicious burned shops during the war on terror. This negative event created very bad impact for China economy. From ancient times till now, the only thing war on terror can gave us was painful.
Hope the war on terror won't happen again in anywhere.

Globalization drives changes for U.S. automakers

U.S. automobile industry have big three companies which are GM, Ford, and Chrysler. They are no longer monopolize the automobile market due to healthcare benefits negatively affects their comparative advantage. Comparative advantage is very important for a nation who should specialize in production of those goods for which it it relatively more efficient with a lower opportunity cost. However, the healthcare issues affects the big three automobile company lost their comparative advantage. 

Healthcare is a significant issue for each country, especially important for some countries who are pay close attention to personal benefit, like America. Every employee care about healthcare. A company have obligation to pay a portion of healthcare to their current employee. If a company doesn't make an acceptable profit for their current employee, it may negatively affect their comparative advantage from other aspect. 

America is a mighty country in economy, military affairs, politics, society, and environment side. Along with America's economy develop rapidly, the citizen of America have right to ask more benefit. However,  time has changed and the good old days are gone. If GM, Ford, and Chrysler want to compete with other foreign automobile companies, they have to shrink their labor costs, including retiree health care expenses; slash debt; terminate or sell low-performing brands; and decrease the number of models for sale and the number of dealers selling them. 

There are other policies that could be enacted to improve the comparative advantage of US car manufacturers. Because of the financial crisis in 2008, economy of USA was massive decreased. I think the government of USA should make some policies to support and help their domestic enterprise. The government of USA can pay the healthcare for each company's current and retire employee. Like China, the government of China took the responsibility for healthcare to each employee, but the government through take off a little portion of labor wage each month, then return the money when the employee are being retire. The US government can support the car manufactures retrieved comparative advantage through this way.

How open to openness are you?

This is my first blog!!! I'm going to talk about the openness.

Openness means exports plus imports divided by the gross domestic product of a country. It is relate to 

economy of each country very deeply. Exports and imports are both important for a country. People 

need to learn what they don't know from others and disseminate information what they know very well 

to others. It can makes our life better. In other words, globalization is each country's mission to 

develop their politics, technology, culture and economy.

I am from China. China is a country which have more than five thousands cultural history. China is not 

openness at all in the past. We didn't trade anything from the other countries. Later, we joined in the 

trade organization in 2001. Our country's economy becomes better. The diagram below is 

show us the development of exports and imports in China.

China is still a growth country. 

Even though we developed our country's economy extremely fast, our labor force are cheap. In 2009, 

China become the biggest exports country in the world. On the other hand, China is the secondary 

biggest imports country. Openness is so important for us, also for each country.