I have to say that I am getting tired of these presidential campaign ads from both sides that just wouldn’t stop blaming China. China is the reason why U.S. has high unemployment rate; China manipulates its currency resulting in the huge trade deficit between the two countries;Oh, of course, China subsidies too much its exporting companies so U.S. cant compete with their low prices….The list can go on and on, and it looks like these might be the only things that the two candidates agree on.
Just a couple of days ago, China became the U.S. political sacrifice again. A Chinese firm is banned from building four wind farms in Oregon by the Obama Administration, citing national security reasons. The firm is part of Sany construction company, whose CEO is leading this industry on the recently released Hurun List, as I have mentioned in my previous post. This is the first time in over 20 years that the U.S. government has put out a ban of this kind. National securities? An okay but laughable cover up. Anything can be of national security concerns if you stretch it enough. So this is definitely not a blessing for other foreign firms who are in similar situations.
This is not making the Sino-US relationship any better. Whoever becomes the next president needs to know that he will have to fix a lot of the damages causing China during the U.S. election season. So when the new president takes office, he will have to make nice with China at least till both feel even before the real show begins.
The Obama Administration has filed seven WTO complaints toward China over unfair subsidies for Chinese companies, and China have also set up various padlocks for U.S. companies, posing sanctions on imports such as tires, for example. Things like these are the tit-for-tat we are most likely to see once the air on the White House is set.