US-China Trade in the News 12-08-2011 Update: The Kyoto Pact

The expiration of the Kyoto Protocol was "hot" news this week.  An international treaty, the Kyoto Protocol is aimed at fighting global warming with the goal of achieving the "stabilization of greenhouse gas concentrations in the atmosphere."  It is due to expire in 2012.  Developing nations, led by China, India and Brazil, say another round of commitments under Kyoto is essential to keep the climate talks on track. China and India had no targets under that treaty and since have become two of the world’s three biggest polluters. The U.S. never ratified the pact.  Meanwhile, the European Union, which has done the most to limit carbon-dioxide emissions since Kyoto came into force, has said it won’t extend the pact unless ministers sign on to a “road map” setting a date for all nations – including big developing ones – to take on mandatory targets.

Elsewhere, the argument concerning solar power continuedAmerican solar panel manufacturers won a round against China when the United States International Trade Commission reached a preliminary conclusion that solar panel manufacturers were being harmed by imports from ChinaFollowing that decision, Democratic lawmakers wrote a letter to President Barack Obama urging an investigation into Chinese solar imports, which they say don’t fairly compete with domestic products.  China voiced deep concerns regarding the investigation.   All this, and more, in today’s US-China trade news update.

Contents
Currency
Global Relations
Economy
Trade
Past Event

Currency

Analysis – Helmut Reisen: The renminbi and poor-country growth
VoxEU, December 5, 2011
“China’ currency has appreciated substantially in recent years. While many in the west still argue that this is not enough and focus on the effects on their domestic industry, this column asks what the effects have been for the world’s poor countries.”  Read more

Analysis –Lucas Ferraz, Emerson Marçal  and Vera Thorstensen: Effects of exchange-rate misalignments on tariff
VoxEU, December 4, 2011
“Persistent exchange-rate misalignments have created trade frictions worldwide. This column argues that the WTO should adopt trade rules that allow nations to neutralise the effects of exchange-rate misalignments. Otherwise, the WTO might become a diplomatic-juridical fiction.”  Read more
Go to the top

Global Relations

In the News – Global Warming Fight Threatened by Debt Crisis as Kyoto Fades
Bloomberg News, December 5, 2011

“Global warming concerns are being pushed down the political agenda by the European debt crisis and U.S. economic slump, reducing the chance for an accord limiting climate change this week.”  Read more

In the News – China, EU Seek to Avoid Blame for Expiring Kyoto Pact
Bloomberg News, December 5, 2011

“China and the European Union today will set out alternative proposals for extending limits on greenhouse gases, seeking to avoid the blame for undermining the only international pact limiting them.”  Read more

In the News – China Sets Conditions for Binding Climate Deal
Bloomberg News, December 4, 2011

“China set out its conditions for adopting a binding post-2020 greenhouse-gas commitment as part of a global deal, demanding an extension of current pledges by industrialized countries under the Kyoto Protocol beyond 2012.”  Read more

In the News – China says US solar probe 'protectionist'
AFP, December 4, 2011

“China on Sunday accused the United States of "protectionist attitudes" towards Chinese solar panel makers and warned that a US investigation could hurt global efforts to cut emissions cheaply.”  Read more

In the News – Biggest Polluters Join in Opposing European Road Map for New Climate Pact
Bloomberg News December 4, 2011

“The world’s three biggest polluters joined in opposing a European Union proposal for talks aimed at drawing up a new climate treaty, dimming the chances of extending the Kyoto Protocol limiting greenhouse gases.”  Read more

In the News – China Softens Opposition to Adopting Legal Goal on Reducing Pollution
Bloomberg News December 3, 2011

“China this week softened its opposition to making a legally binding pledge to reduce its greenhouse gas emissions, opening the possibility for a broader international effort to fight climate change.” Read more

In the News – Democrats Urge Obama to Investigate Chinese Solar Imports
Bloomberg Businessweek, December  3, 2011

“Democratic lawmakers wrote a letter to President Barack Obama urging an investigation into Chinese solar imports, which they say don’t fairly compete with domestic products.”  Read more

In the News – China says 'deeply concerned' over US solar ruling
AFP, December  3, 2011

“China said it was "deeply concerned" after a US trade panel ruled that Chinese companies have harmed the US solar panel industry by selling products at unfairly cheap prices.”  Read more

In the News – Panel Says Chinese Imports Hurt U.S. Solar Firms
New York Times, December  2, 2011

“American solar panel manufacturers won a round against China on Friday when the United States International Trade Commission reached a preliminary conclusion that they were being harmed by imports.”  Read more

In the News – Feds Hunt Spyware in Foreign-Made Network Components, Report Says
Security News Daily,  November 30, 2011

“The U.S. government is forcing major telecommunications companies, including Verizon and AT&T, to disclose any foreign-made networking hardware or software they are using, and whether they've noticed anything suspicious about it, according to a report by Bloomberg News.”  Read more

In the News – China drift toward more state control "troubling": U.S.
Reuters, November 30 , 2011

“The United States on Wednesday criticized China for backing away from free market reforms and moving toward more state control of its economy as Beijing approaches the tenth anniversary of its entry into the World Trade Organization.”  Read more

Commentary – Clyde Prestowitz: Playing by the rules
Prestowitz on Trade, Tuesday, November 29, 2011

“In an important recent Financial Times opinion piece, U.S. National Security Advisor Tom Donilon says: "As part of an open international economic order, nations must play by the same rules" and goes on to emphasize "strengthening the international rules" and ensuring that "governments abide by these rules. It all sounds refreshingly fair, firm, and right. But it's not. In fact, it's a repetition of things that have been said by every U.S. administration of the past fifty years and it is based on false assumptions and ,false linkages, false logic that make it unlikely to happen and perhaps even undesirable.”  Read more
Go to the top

Economy

In the News – Chow Tai Fook’s $2.8B H.K. IPO May Beat Prada
Bloomberg News,  December 5, 2011

“Chow Tai Fook Jewellery Group Ltd. aims to raise as much as HK$22 billion ($2.8 billion) in what may be Hong Kong’s biggest initial public offering this year as luxury-goods companies tap growing affluence in China.”  Read more

In the News – Emerging-Market Stocks Drop First Time in a Week on China Growth Concerns
Bloomberg News,  December 5, 2011

“Emerging-market stocks fell for the first time in a week after China’s non-manufacturing industries contracted last month, countering reports that Italian Prime Minister Mario Monti introduced a 30 billion-euro ($40 billion) proposal to cut the nation’s debt.”  Read more

In the News – China’s Stocks Decline, Extending Fourth Weekly Loss, on Property Concerns
Bloomberg News,  December 5, 2011

“China’s stocks (SHCOMP) fell, sending the benchmark index to a six-week low, after non-manufacturing industries contracted as the government’s curbs on property and lending damped demand.”  Read more

Commentary- Heidi Shierholz– Job growth strengthens but insufficient to cure sick labor market
Economic Policy Institute, December 2, 2011
“This morning’s release of the Employment Situation report by the Bureau of Labor Statistics showed that 120,000 jobs were added in November, enough to allow the share of the working-age population with a job to nudge up a tenth of a percentage point (from 58.4% to 58.5%). Revisions to earlier months were positive as well. However, the length of the average work week was flat, and average hourly wages declined. The unemployment rate dropped to 8.6%, but most of that decline can be explained by the drop in the labor force participation rate from 64.2% to 64.0%  (if the labor force participation rate had not declined in November and the people who made up the decline were in the labor force unemployed, the unemployment rate would have been 8.9%). All in all, this report showed very modest improvement in the labor market.  At this pace of job growth, it will be more than two decades before we get back down to the pre-recession unemployment rate.”  Read more

Commentary- Andrew Fieldhouse – Paying for a jobs bill by cutting federal jobs?
Economic Policy Institute, December 2, 2011

“Earlier this week, Senate Republicans rolled out their proposal for financing an extension of the Social Security payroll tax cut scheduled to expire at the end of December. Disappointingly, the conservative counteroffer is to pay for this job creation measure by cutting federal employees’ jobs and wages.”  Read more

Commentary – Peter Morici, Ph.D.: Many Adults Leave Labor Force Dropping Unemployment Rate to 8.6 Percent
American Economic Alert, December 2, 2011

“The economy added 120,000 jobs in November, and unemployment fell to 8.6 percent from 9.0 percent in October. Job growth in range of 120,000 should be expected to accommodate labor force growth but not much lower the unemployment rate -- especially not by nearly half a percentage point. However, the scarcity of jobs is causing many professional to establish home-based businesses that really don't provide full time employment but do take those workers off of the unemployment rolls.  Also, many adults have quit looking for work altogether, and the adult labor force participation rate fall sharply in November. Working age adults not participating in the labor force -- those neither employed nor looking for work -- increased by 487,000 in November.”   Read more

In the News – Factories stall worldwide, U.S. jobless claims rise
Reuters, December  1, 2011

“Manufacturing activity is contracting across Europe and most of Asia, data showed on Thursday, and a Chinese official declared that the world economy faces a worse situation than in 2008 when Lehman Brothers collapsed.”  Read more

In the News – Manufacturing in U.S. Probably Expanded at a Faster Pace
Bloomberg Businessweek, December  1, 2011

“Manufacturing in the U.S. probably grew in November at the fastest pace in five months, showing factories will keep supporting the economic expansion through the end of the year, economists said before a report today.”  Read more

Commentary – Jack Perkowski: China Eases Monetary Policy
Forbes The China Factor blog, December 1, 2011

“Last evening, an announcement by the People’s Bank of China said that it would reduce the reserve requirement ratio by 0.5 of a percentage point, effectively increasing the amount of money banks can lend. This is the first time that the PBOC has cut bank reserve levels in three years, signaling a decisive shift in monetary policy.”  Read more

In the News – India and China Continue to Struggle with Poverty
2 Point 6 Billion blog, November 30, 2011

“Despite rapid growth and their large proportions of global GDP, many people in China and India continue to live in poverty. In this year’s United Nations Human Development Index (a measure based on well-being as judged by income, education and life expectancy) China was ranked 101st out of 187 countries while the World Bank ranked the country 95th in terms of GDP per capita.”  Read more
Go to the top

Trade

In the News VIDEO – Gary Locke: the man to unlock US-China trade?
Reuters, December 1, 2011

“Washington is counting on the popular ambassador Gary Locke to help break down trade barriers into the China market. Jon Gordon reports.”  To watch
Go to the top

Past Event

What: CSIS-Schieffer Series Dialogues: Securing Cyberspace in the 21st Century
Who:
Bob Schieffer, General James E. Cartwright,  Ellen Nakashima, James A. Lewis
When:
  Tuesday, December 6, 2011, 5:30 p.m.-6:30 p.m.
Where:
B1 Conference Center, Center for Strategic and International Studies, 1800 K Street, NW
Washington DC, 20006
Synopsis:
  The TCU Schieffer School of Journalism and CSIS cosponsor a monthly series of dialogues hosted by award-winning journalist Bob Schieffer to discuss the most pressing foreign and domestic issues of the day.   Learn more
Go to the top

FutureofUSChinaTrade.com is a program of The Kearny Alliance