International Political Economy

Porntipa Somphum December 1 , 2007

INTL 3100

Webster University Thailand

NY Times Reaction

China Agrees to Remove Certain Export Subsidies

Article Summary

China agrees to eliminate some trade subsidies and tax rebates aimed at promoting their export and hurting imports such as wood , steel information technology , and other goods . The Bush Administration is arguing that this is a victory for its Chinese trade policies . The top trade envoy also said this victory vindicates the administration 's policy of negotiations instead of punitive legislation in Congress Senator Schumer disagrees

and states that it is only a small step in the right direction and hardly a victory . The author , Steven Weisman , is merely informing the reader on this particular issue and makes no bias towards either side or any recommendations moving forward

Is the argument logical

Susan Schwab , the top trade envoy for the upcoming trade talks with China hailed this as a victory for American manufacturing companies and workers . She also claimed that this victory proves the administration is on the right tract in its negotiations with China . This is in opposition to punitive legislation that is sitting in Congress . Her argument is based on how the United States and other countries have been in disagreement with China over their various trade practices . They contend that China 's trade policies specifically and designed for unfavorable conditions for foreign companies and investors and unfairly favorable conditions for domestic exports

This argument does not seem logical when compared to China 's dominating trade relationship . Her statements seem ignorant to the current trade climate and seem more like a political statement than a fact . China seems very unwilling to give any other concession on its policies and is more irritated at the United States interference of China 's trade within the WTO than anything else . Although this action by China is being hailed by National Association of Manufacturers , the overall situation seems to be contrary to Ms . Schwab 's view

Senator Chuck Schumer argued that this subsidy termination by China could hardly be called a victory under the current circumstances . His argument is based on how the United States and other countries have a laundry list of complaints against China 's trade policies . Congress has made legislation that will impose punitive damages against China for their policies . Senator Schumer contends there is a long way to go in this current trade fight with China and this is just a minor victory

His arguments seem much more logical to the current circumstances . As stated earlier , China 's willingness to eliminate the subsidies and tax rebates that promote their exports and discourage imports is only a marginal victory in this trade battle . Senator Schumer 's remarks agreed with this conclusion . However , his remarks may not have been motivated purely by his grasp of this situation . Rather is it entirely possible that his comments were a reaction to Ms . Schwab 's notion that this is a victory for the Bush administration . Senator Schumer , a democrat and...