machinehead61
Titanium
- Joined
- Feb 8, 2004
- Location
- Rochelle,IL,USA
A fascinating article that highlights the Chinese government's commitment to violating trade agreements to pursue its predatory trade policies.
Putting the pedal to the metal: Subsidies to China
Since 2001, the Chinese auto-parts industry has received about $27.5 billion in subsidies. Over the next decade, China’s central government has committed to disburse an additional $10.9 billion in subsidies for industrial restructuring (mainly outbound mergers and acquisitions) and technological development of the auto-parts industry.
The Chinese auto and auto-parts industries have also benefited enormously from other government policies. China’s central and 24 provincial governments have classified the automotive industry as a “pillar industry.” For the last decade, Chinese government policy for auto parts has been one of extensive institutional support for the acquisition and development of cutting-edge technology, including new energy and green technologies.
While other foreign auto companies operating in China have linked to auto-parts suppliers back home, U.S. auto companies have cut ties with suppliers in the United States or encouraged them to manufacture in China. U.S. global auto strategy currently centers on manufacturing in China and exporting back home. Consequently, China’s exports of auto parts to the United States are three times those of its next highest trading destination, Japan.
Specific subsidies from 2001 to 2011 to Chinese auto-parts manufacturers included approximately $2.3 billion in subsidies (from 2001 to 2009) to 73 companies reported in their annual reports; approximately $1 billion in subsidies for coal (from 2001 to 2010); approximately $0.6 billion in subsidies for electricity (from 2002 to 2010); approximately $0.3 billion in subsidies for natural gas (from 2004 to 2010); approximately $1.6 billion in subsidies for glass (from 2004 to 2010); approximately $3.2 billion in subsidies for cold-rolled steel (from 2003 to 2010); and approximately $18.4 billion in subsidies through technology-development and industrial-restructuring policies (from 2001 to 2011) from the central government and seven local governments.
And when bills are introduced to remove China's Permanent Normal Trade Realtions (PNTR) you can bet your bottom dollar they will be killed.
Putting the pedal to the metal: Subsidies to China
Since 2001, the Chinese auto-parts industry has received about $27.5 billion in subsidies. Over the next decade, China’s central government has committed to disburse an additional $10.9 billion in subsidies for industrial restructuring (mainly outbound mergers and acquisitions) and technological development of the auto-parts industry.
The Chinese auto and auto-parts industries have also benefited enormously from other government policies. China’s central and 24 provincial governments have classified the automotive industry as a “pillar industry.” For the last decade, Chinese government policy for auto parts has been one of extensive institutional support for the acquisition and development of cutting-edge technology, including new energy and green technologies.
While other foreign auto companies operating in China have linked to auto-parts suppliers back home, U.S. auto companies have cut ties with suppliers in the United States or encouraged them to manufacture in China. U.S. global auto strategy currently centers on manufacturing in China and exporting back home. Consequently, China’s exports of auto parts to the United States are three times those of its next highest trading destination, Japan.
Specific subsidies from 2001 to 2011 to Chinese auto-parts manufacturers included approximately $2.3 billion in subsidies (from 2001 to 2009) to 73 companies reported in their annual reports; approximately $1 billion in subsidies for coal (from 2001 to 2010); approximately $0.6 billion in subsidies for electricity (from 2002 to 2010); approximately $0.3 billion in subsidies for natural gas (from 2004 to 2010); approximately $1.6 billion in subsidies for glass (from 2004 to 2010); approximately $3.2 billion in subsidies for cold-rolled steel (from 2003 to 2010); and approximately $18.4 billion in subsidies through technology-development and industrial-restructuring policies (from 2001 to 2011) from the central government and seven local governments.
And when bills are introduced to remove China's Permanent Normal Trade Realtions (PNTR) you can bet your bottom dollar they will be killed.