Shanghai, September 23 (Gasgoo.com) US President Barack Obama affirmed Chinese President Hu Jintao in a meeting on Tuesday that the US is firmly committed to free trade, as he sought to ease frictions over a U.S. decision this month to slap trade sanctions on Chinese tires, Reuters reports.
A U.S. official who spoke to reporters on condition of anonymity said that Obama told Hu at the sidelines of the United Nations General Assembly that despite the tire decision, the United States remains committed to free trade and resisting protectionism.
Chinese officials have labeled the tire decision a dangerous act of protectionism and have responded that they would investigate whether imported US autos and chicken parts were being dumped on the Chinese market.
The ongoing China-U.S. trade dispute will drive tire prices higher for American consumers and also threatens to complicate business for U.S. automakers in the booming Chinese market if unresolved, analysts say.
Rising protectionism may hamper world trade and undermine the global economy's recovery from recession, the European Central Bank said weeks ago.
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