China hits back in US tyre import dispute
Posted: 13 September 2009 2253 hrs

	Photos 1 of 1 Chinese workers check tyres at a factory in Hangzhou.

BEIJING: China on Sunday denounced US tariffs on its tyre exports and announced it would investigate possible unfair practices in US exports of car parts and chicken meat, straining ties between the two giants.

Chinese foreign ministry spokeswoman Jiang Yu said the US tariffs amounted to a "grave" form of protectionism.

"The United States, by making the decision, failed to honour its commitments made at the G20 financial summit and abused trade remedy measures, which is grave protectionism and will undermine China-US economic and trade ties as well as the early recovery of the world economy.

"We hereby express our strong discontent and firm opposition to the US decision," she said, quoted by state news agency Xinhua.

Earlier, China's commerce ministry announced a probe into the United States' own exports of car products and chicken meat to China, having warned it was likely to retaliate against the US tyre tariffs.

"In line with national laws and World Trade Organisation rules, the commerce ministry has started an anti-dumping and anti-subsidy examination of some imported US car products and chicken meat," the commerce ministry said.

"Recently, the commerce ministry has received word from domestic industries indicating that the above mentioned products had entered our nation's markets via dumping, subsidies and other unfair trade means.

"This impacted domestic industries and the commerce ministry was requested we launch an anti-dumping and anti-subsidy probe."

It gave no further details on the exact products involved or the alleged trade violations.

China was responding to an announcement by The White House on Friday of punitive duties of an extra 35 percent on Chinese-made tyres.

The dispute comes just weeks before Obama is due to host his Chinese counterpart Hu Jintao at the G20 summit this month, a meeting now sure to be a test of Washington's stated commitment to strengthening ties with Beijing.

Obama approved an increased duty on all imports of passenger vehicle and light truck tyres from China for a period of three years.

The decision was taken "in order to remedy a market disruption caused by a surge in tyre imports," the White House said.

Obama had been under pressure domestically to curb rocketing imports of Chinese goods that critics suggest have cost more than 5,000 jobs in the United States.

The government-run US International Trade Commission (USITC) had urged duties of up to 55 percent after union leaders claimed imports of cheap Chinese tyres had tripled over the last five years.

However, to minimise Chinese anger, Obama opted for a lower figure, whereby tariffs - already at four percent - will soar by an additional 35 percent in the first year, 30 percent in the second and 25 percent in the third.

China was already angered earlier in the week when the US imposed tariffs on pipes used in the petroleum industry.

The United States has long grappled with a ballooning trade deficit with China amid allegations that Beijing has been manipulating its currency to make its exports more competitive.

Obama entered the White House in January after campaigning for a robust trade policy with China. - AFP/ms/de

Should phrase it in this way instead:

Currently, the STI is testing the 2660 level as resistance. Should the STI has push beyond 2660, the next target would be 2700 and possibly 2744.

 

Another US bank fail !!!

 

Corus, Minn. bank busts bring '09 failures to 91

SAN FRANCISCO (MarketWatch) -- Regulators closed Chicago-based Corus Bank N.A. and Woodbury, Minn.-based Brickwell Community Bank on Friday, bringing the number of U.S. bank failures this year to 91 and costing the federal deposit-insurance fund more than $1.7 billion as the credit crisis continues claiming victims.

Corus /quotes/comstock/15*!cors/quotes/nls/cors (CORS 0.25, -0.02, -5.77%) had $7 billion in assets and $7 billion in deposits as of June 30, the Federal Deposit Insurance Corp. said in a statement. The bank's deposits have been assumed by MB Financial Bank, the FDIC added.

MB Financial /quotes/comstock/15*!mbfi/quotes/nls/mbfi (MBFI 16.51, -0.52, -3.05%) will pay the FDIC a premium of 0.2% to assume all of the failed bank's deposits, and has agreed to purchase roughly $3 billion of its assets, "comprised mainly of cash and marketable securities," the regulator said.

Reports of Corus Bank's failure had surfaced earlier Friday. The Corus failure will cost the federal deposit-insurance fund $1.7 billion.

Separately, Brickwell Community Bank had $72 million in assets and $63 million in deposits as of July 24, according to the FDIC. Its deposits have been assumed by Mitchell, S.D.-based CorTrust Bank.

Brickwell Community Bank is the third bank to fail in Minnesota this year, and will cost the deposit-insurance fund $22 million.

 

 

Dun mind justify your reason (with substances like facts, figures, TA, etc) tat make u say tat.

Thks

ozone2002      ( Date: 11-Sep-2009 15:02) Posted: BIG BIG BUBBLE FORMING.. erictkw      ( Date: 11-Sep-2009 12:57) Posted: China assures world on stimulus efforts 08:09, September 11, 2009 China will not end its stimulus initiatives at a time when the global economy is starting to see "slow and zigzag" recovery from its free fall, Premier Wen Jiabao assured global business leaders Thursday. Instead, he said the country will "enrich its stimulus package" to better link it to the creation of new engines of China''s growth. "We cannot and will not change the direction of our policies at an inappropriate time," Wen said at the opening of the World Economic Forum in Dalian, Liaoning province. "The foundations of China''s economic recovery are not stable, not solidified and unbalanced and the global economic outlook is uncertain," he said. "The top priority of our work is to maintain stable and quick economic growth, so we will unswervingly stick to a relatively loose monetary policy and an active fiscal policy," said Wen. Economists and analysts saw Wen''s rejection of an early "stimulus exit" as a firm international commitment to shore up the global economy and they said the subject is sure to be further debated at the upcoming G20 leaders summit in Pittsburgh, Pa., late this month. Foreign Ministry spokesperson Jiang Yu said yesterday in Beijing that China hopes the forum will help tackle the world economic downturn and send a "stronger signal" for global recovery. "It''s too early to discuss the stimulus exit timetable because the global economy is still filled with uncertainties," Bi Jiyao, a senior economist with the National Development and Reform Commission, told China Daily. Bi said developed economies may consider withdrawing their fiscal stimulus measures around the middle of next year, if the world economy steadily picks up. China's Premier Wen Jiabao (L) waves next to World Economic Forum (WEF) founder Klaus Schwab after his speech at the opening ceremony of the WEF meeting, in China's port city Dalian September 10, 2009. (chinadaily.com.cn/Agencies) "For China, I think we will continue with strong fiscal spending but we should readjust where the taxpayers' money is going," said Bi. Wen said China would insist on policy consistency to ensure high-speed economic growth. "We should fully implement and continuously improve policies and discover and resolve new problems in a timely manner," said Wen. He warned about the risk of inflation even though the country was still experiencing deflation. "We should be alert and prevent all potential risks, including inflation," he said. China Daily learned yesterday from reliable sources that industrial growth last month was believed to be up by between 8.0 and 8.5 percent from 7.5 percent in July. The financial crisis led to the figure plunging to 3.8 percent in February, compared to its average of 15 percent before the financial turmoil. China began the year with many economists predicting that it would fail to hit its target of 8 percent growth for the year, which is crucial if China is to generate enough jobs for its millions of migrant workers. Hitting 8 percent is now within reach after China's economy expanded 7.9 percent in the second quarter, according to the central bank. Analysts have applauded the effectiveness of China's two-year, 4-trillion-yuan ($585 billion) stimulus package, but some have fretted that, in emphasizing investment, China has slowed the much-needed transition to a consumption-driven economy. Full Coverage: Davos at Dalian

Intraday had aredi broke above 2700, will probably head towards the fibo retracement level of 61.8% at around 2965, but of course not in one straight line, with corrections in between.

Dyodd n BOSAYOR