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Showing posts with the label Chinese Tariffs

Exposing China's Export Subsidies

On Wednesday the U.S. lodged complaints to the World Trade Organization alleging that China is subsidizing export industries that create unfair advantages for their companies in the market. The industries relate to clothing, metals, chemicals, medical, and agriculture resulting in a billion dollars worth of supplier help that artificially boosted exports making it more difficult for American businesses to compete. Export subsidies occur when government pays to produce and export products to other countries at a cheaper price than what would be possible if the natural market forces were at play. In subsidized industries the country can unfairly push cheaper manufactured products onto foreign markets creating a flooding effect. The price consumers pay is not accurate and creates unfair advantages that limits the revenue of competitors. Countries may use this strategy for a number of reasons. One of those reasons include dumping excess products and then flooding another country'