Tariffs such as those imposed by the U.S. on Chinese-tire imports are protectionist and may end up hurting American industry and consumers should China retaliate, said Wei Jiafu, chairman of China Cosco Holdings Co.
Levying tariffs"is not a sensible way to resolve the disputes," Wei said in a speech at the National Press Club in Washington."It may help to leave more market share to U.S. tire manufacturers by increased tariffs, but these measures of protectionism will eventually harm American consumers and related sectors."
The Obama administration's decision last month to impose duties of 35 percent on $1.8 billion in automobile tires sparked friction between the two countries, which are holding talks this week to reduce trade barriers.
While China Cosco, Asia's biggest shipping company by market value, won't be significantly hurt by the U.S. move, further duties on other Chinese goods could cut start to cut into freight volumes, Wei said. China would probably retaliate with trade moves, including looking to Europe for purchases of high-technology goods rather than the U.S., Wei said.
"If it spreads to more areas, that will affect shipping and American industry and consumers," he said in an interview.
Cosco, based in Tianjin, China, ships tires and other container and bulk products.
Economy Recovering
Wei also said in a separate interview on Bloomberg Television that the global container shipping market is growing, with the world economy recovering from the financial crisis and poised for expansion next year.
Cosco, which in July canceled a $299 million order for eight vessels as the global recession lowered shipping demand and sapped freight rates, doesn't plan more cancellations, Wei said.
Full story
Gasgoo: auto parts source
