Sign in | Join us  
      
 Popular Searches:diamond,cbn,tuck point blade,cup wheel,saw blade, brown fused alumina
Home -- Information


  Featured Companies
 • Yantai Cct Metal…
 • Dymend Tools Co.,…
 • Henan Boreas New…
 • Yancheng Xiehe Machinery…
 • EKF Industrial Supplies…
 • Ruishi New Material…
 • MORESUPERHARD
 • Henan Banner New…
 • Zhengzhou best synthetic…
 • Zhengzhou Haixu…

 Print  Add to Favorite
Custom your font size:     

Expert: Protectionism no cure to economy


Post Date: 19 Sep 2009    Viewed: 537

A US auto industry expert criticized Wednesday the recent Obama administration's protectionism decision to increase tire tariff on imported Chinese tires as a "blockage" to the circulatory system which will not cure the economy but likely to prolong and worsen the economic problems.


In an interview with Xinhua, Bill Russo, president and founder of Synergistics Limited who has over 15 years as an automotive executive including 5 years of experience in China and Asia, said "trade protectionism does not work historically."


When commenting on the effect of this tariff hike, Russo used historical example to illustrate his point of view. "Trade protectionism does not work historically. During the great depression, US increased import tariff on many thousand commodities, but it did not cure the economy and it most likely prolonged and worsened the economic problems."


He further explained: "You can use the metaphor of protectionism as a 'blockage' to the circulatory system that depends on free and open trading among countries. Currently, industries such as automotive are struggling to recover from the global financial crisis. An already fragile system is made more fragile when such measures are taken because of the net impact on overall global supply chain and logistics costs."


He warned that trade protectionism will restrict the circulatory system of the global economy, and protectionism is contagious which will spread all over the world and worsen the economic situation.


Talking about the long term impact, he said: "Over time, as global economies become more interdependent and as industries pursue cross-border alliances similar to Renault-Nissan and Fiat- Chrysler, Opel-Magna, and others, it will become apparent that such protectionist measures are actually of limited benefit on both the consumer and manufacturer side."


Obama administration imposed punitive tariffs on low-end tires from China this week. The US decision takes effect on September 26.


According to report, Obama cited a surge in Chinese imports that could destabilize domestic manufacturers as the reason for such decision. However, Chinese statistics show tire exports to the United States rose by 2 percent in 2008, and fell by more than 15 percent in the first half of 2009.


Superhard Material of China

Superhard Material of China

Abrasives and Grinding Products of China

Abrasives and Grinding Products of China

Coated Abrasives of China

Coated Abrasives of China

Chia International Abrasives & Grinding Exposition

China International Abrasives & Grinding Exposition

Home | About Us | Members | Contact | Advertising Quotation
Supported by Yuanfa Information Technology co.,Ltd
Copyright ©Abrasivesunion 2006. All rights reserved
Page rendered in 0.0296 seconds
增值电信业务经营许可证:豫B2-20202116  ICP备案:豫B2-20100036-2