It is necessary to underscore this importance given the current fragility of the international trading system amid a global resurgence of protectionist pressures due to the deepening economic crisis (Bown, 2009).
In 2006, and in response to increased political pressure by the U.S. Congress, Washington initiated the current U.S. strategy of using the judicial forum of the WTO to manage bilateral trade frictions with Beijing. In March 2006, Canada and the European Community (EC) joined the United States in the first dispute by challenging China's discriminatory treatment of imported automobile parts. In 2007, the United States and Mexico disputed China's system of subsidizing domestic industries. Also in 2007, the United States initiated two complementary disputes over China's treatment of imported movies, music, and books, both Beijing's failure to enforce American intellectual property rights protection and its creation of regulatory hurdles that impede Hollywood film studios and other media and publishing companies from distributing these products within China. In 2008, the United States, EC, and Canada began a challenge to the way China regulated foreign firms like Bloomberg, Dow Jones, and Thomson-Reuters that tried to provide financial information services to customers in its domestic market (Bown, 2009).
Experts believe that in order for there to be a global balance there would need to a decrease in the savings rate in China as quickly as the savings rate in the United States goes up. The growth model that China has followed which has been aggravated by the fiscal, credit, and monetary stimulus in response to the crisis, is likely to persist with a process in which total income, GDP, grows faster than consumption. Over the short-term...
Hopefully with the intervention of the WTO the two sides can come to an understanding that will allow for each country to get on the right track towards economic stability.
References
Bown, Chad P. (2009). U.S. -- China Trade Conflicts and the Future of the WTO. Retrieved April
0, 2010 from Web site: http://fletcher.tufts.edu/forum/archives/pdfs/33-1pdfs/Bown.pdf
Gross, Daniel. (2009). Chicken Feet and Chump Change. Retrieved April 20, 2010, from Newsweek Web site: http://www.newsweek.com/id/216754
Lum, Thomas and Nanto, Dick K. (2007). China's Trade with the United States and the World.
Retrieved April 20, 2010, from Web site: http://www.fas.org/sgp/crs/row/RL31403.pdf
Pettis, Michael. (2010). U.S.-China Trade Relations -- The Next Dispute? Retrieved April 20,
2010, from Carnegie Endowment Web site:
http://www.carnegieendowment.org/publications/index.cfm?fa=view&id=30975
Schuman, Michael. (2009). Why the China-U.S. Trade Dispute Is Heating Up. Retrieved April
20, 2010, from Time Web site:
http://www.time.com/time/business/article/0,8599,1922155,00.html
Scissors, Derek. (2008). The Coming U.S.-China Trade Conflict. Retrieved April 20, 2010, from The Heritage Foundation Web site:
http://www.heritage.org/Research/Reports/2008/12/The-Coming-U.S.-China-Trade-
Conflict
