(AmericanProsperity.com) – When the World Trade Organization was signed years ago, it was a celebratory event leaving people optimistic.
When you compare how trade is now versus how they were when the WTO was made, we are in much darker times. With this said tensions between the United States and China are high. China recently opened a WTO case against the United States in an attempt to safeguard its vehicle industry. Beijing is essentially saying that Joe Biden’s push for green energy manufacturing in the United States is breaking global trade rules.
There isn’t a lot of optimism in the case of the United States and China ever being resolved. Ultimately, the WTO can’t settle disputes on its own and anyone on the opposing side of the WTO can submit an appeal.
United States officials have spoken out about China’s reaction to the IRA and many have said that China is trying to protect their manufacturers. Neil Shearing, who is a chief economist, said that China’s manufacturing has had a significant expansion since the pandemic.
Donald Trump has even come up with a plan to prevent American car manufacturing from getting flooded. While Trump was president he put over three hundred billion dollars in tariffs on Chinese imports. With this, he also said that he would impose a one hundred percent tariff on Chinese vehicles imported from Mexico and a fifty percent tariff on all other Chinese goods.
With this, Biden is also riding the same tough lines when it comes to trading with China. Many have said that no matter who wins the next election in the U.S., the trading agreements with China will be imbalanced and many are expecting a new trade war.
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