US trade strategy could backfire

"Hammering China" has become increasingly popular on the other side of the Pacific in the run up to the presidential election. In the latest instance, the World Trade Organization said on Thursday that the United States had filed a complaint against China for imposing duties on some US-made automobiles.

Ron Kirk, the US trade representative, said in a statement that "the (Barack) Obama administration will continue to fight to ensure that China does not misuse its trade laws and violate its international trade commitments to block exports of American-made products".

On Dec 14 last year, the Chinese government decided to impose anti-dumping and anti-subsidy duties on sedans and sports utility vehicles with engines of 2.5 liters and above imported from the US after an investigation showed evidence of dumping. This was widely interpreted by US media outlets as retaliation for the US imposing tariffs on imports of Chinese tires. They failed to mention that the Obama administration subsidized US automakers General Motors and Chrysler in 2009.