Trade frictions between China and the United States will probably become more heated in the months ahead, but no trade war will break out between the two biggest economies in the world, Pascal Lamy, director-general of the World Trade Organization, said on Tuesday.
"As Chinese trade with the rest of the world grows, there is a normal statistical proportion of trade frictions, and we believe that the frictions can be handled peacefully," said Lamy.
"But nothing like a trade war."
Tuesday, May 29, 2012
Monday, May 28, 2012
Trade War Looming as China Rebukes U.S. Support for Solar
A Tainergy Tech Co. employee displays a solar panel at the company's
plant in Chungli, Taiwan, in 2010. China alleges free-trade rules are
being violated by some US states.
China’s allegation that renewable-
energy subsidies in five U.S. states violate free-trade rules
ratchets up a potentially costly trade war between the world’s
two largest economies.
“It’s a long, slow escalation of trade and currency wars
as we race to the bottom,” said Theodore O’Neill,
China’s allegation that renewable-
energy subsidies in five U.S. states violate free-trade rules
ratchets up a potentially costly trade war between the world’s
two largest economies.
“It’s a long, slow escalation of trade and currency wars
as we race to the bottom,” said Theodore O’Neill, an analyst
with Wunderlich Securities Inc. of New York.
Chinese solar companies have
criticized the U.S. Commerce Department's preliminary decision that they
improperly benefit from government subsidies and sell solar cells below
cost. Photo: Peter Parks/AFP via Getty Images
Programs supporting renewable power, including wind and
solar, in Washington state, New Jersey, Massachusetts, Ohio and
California, violate World Trade Organization policies and trade
treaties, according to a preliminary finding of an investigation
posted yesterday on the website of China’s Ministry of Commerce.
China filed a complaint today at the WTO over U.S. procedures
for calculating anti-subsidy duties on imports.
Those announcements followed a preliminary decision by the
U.S. Commerce Department last week to impose tariffs of as much
as 250 percent on imports of Chinese solar cells. The agency
said the units were being sold for less than the cost of
production in an attempt to drive out domestic competition. Read the rest here
Wednesday, May 23, 2012
A Greek Exit Could Make the Euro Area Stronger
A Greek exit from the euro area would
inflict heavy damage in Greece and throughout Europe. It could
also be one of the best things that ever happened to the
currency union.
Greece’s repeat parliamentary election next month will
serve as a referendum on whether the country should end its 12-
year membership in the common currency. An affirmative answer
would trigger a cardiac arrest of the Greek economy, as the
banking system collapsed and foreign suppliers refused payment
in drachmas.
The financial system of the euro area, by far
Greece’s biggest international creditor, would suffer hundreds
of billions of euros in losses.
For the European economy as a whole, the primary danger
would be the reintroduction of currency risk into what has been
billed as an irrevocable monetary union. When Greek banks
collapse, or have to be closed for a prolonged holiday to
facilitate a forced conversion of deposits into new drachmas,
one cannot predict whether citizens and firms across the
periphery of Europe will pull their money out of their banks
just in case. The result could be financially disastrous.
The potentially dire repercussions have led many to assume
that no responsible European policy maker would allow a Greek
exit to take place. By this view, all the talk about letting
Greece leave is merely a scare tactic. Europe’s leaders will
blink first in their game of chicken with Greece and ease the
terms of the country’s austerity program. Read the rest here
Tuesday, May 22, 2012
Jeeps Sell for $189,750 as China Demand Offsets Tariffs
By Tim Higgins -
May 21, 2012 5:00 PM PT
The Jeep store in south Beijing near
the Timberland and London Fog outlets carries the season’s
latest offerings of branded shirts, shoes, belts and backpacks.
Not for sale here: Jeep sport-utility vehicles.
Jeep gear is so popular in China that there are more than
1,500 licensed clothing outlets in the country, where only 120
auto dealers sell the brand. While Jeep has a strong image
connected to an adventurous lifestyle, three decades of changing
ownership have left it without local production and missing out
on surging demand for SUVs in the world’s largest vehicle
market.
A Chrysler Group LLC Jeep sport
utility vehicle (SUV) sits parked under red lanterns in Beijing, China.
Photographer: Keith Bedford/Bloomberg
April 12 (Bloomberg) -- The
2012 Jeep Grand Cherokee SRT8 4x4 sport-utility vehicle is seen in a
promotional video from Chrysler Group LLC.
The vehicle features a 6.4-liter Hemi V-8 engine with 470
horsepower and 465 pound-feet of torque. (Video courtesy of Chrysler
Group. Source: Bloomberg)
Monday, May 21, 2012
Walmart Bribery Probe Frustrating U.S. Lawmakers
To discuss on Wednesday
From Reuters
By Aruna Viswanatha
WASHINGTON, May 21 (Reuters) - U.S. lawmakers investigation Wal-Mart Stores Inc for alleged bribery in Mexico are frustrated by the lack of cooperation they have received from the company, a committee staffer familiar with the investigation said.
Attorneys for Wal-Mart briefed the committee earlier on Monday about the company's anti-corruption compliance program, the person said.
But Wal-Mart has not committed to briefing the panel on the substantive allegations raised by a New York Times report, a key request of the committee, said the staffer, who spoke on the condition of anonymity.
A Wal-Mart spokesman did not immediately respond to a request for comment. The company has previously declined to discuss the allegations citing pending investigations. Read the rest here
From Reuters
By Aruna Viswanatha
WASHINGTON, May 21 (Reuters) - U.S. lawmakers investigation Wal-Mart Stores Inc for alleged bribery in Mexico are frustrated by the lack of cooperation they have received from the company, a committee staffer familiar with the investigation said.
Attorneys for Wal-Mart briefed the committee earlier on Monday about the company's anti-corruption compliance program, the person said.
But Wal-Mart has not committed to briefing the panel on the substantive allegations raised by a New York Times report, a key request of the committee, said the staffer, who spoke on the condition of anonymity.
A Wal-Mart spokesman did not immediately respond to a request for comment. The company has previously declined to discuss the allegations citing pending investigations. Read the rest here
Saturday, May 19, 2012
G8 says it wants Greece to remain in 'strong' eurozone
The leaders of the G8 group of the world's most powerful economies say they want debt-stricken Greece to remain in the eurozone.
In their summit communique, G8 leaders also committed themselves to promoting growth alongside fiscal responsibility.
However, the leaders acknowledged "the right measures are not the same for each of us".
Greece's possible exit from the eurozone was high on the agenda, following inconclusive elections there.
The leaders of France, Germany, the US, the UK, Italy, Japan,
Canada and Russia have been meeting at Camp David in the US state of
Maryland.
Wednesday, May 16, 2012
Should Argentina remain a member of the G20?
Argentina nationalized YPF, manipulates inflation statistics, faces capital flight, has systemic problems with state and national budgeting and is in a trade dispute with Brazil.
Argentina's history is a continuing series of economic and political crises and they'll probably face another before the decade is out. I certainly don't agree with most of the Kirchner's economic policy.
All that said, they still deserve a seat at the G20. Five reasons why: READ THE REST HERE
Tuesday, May 15, 2012
The Uses of Research' - Segmentation: Sony Music
The importance of segmentation is examined in this first of an
essential series of videos from Marketing Week and Quadrangle. This
downloadable video shows how Sony Music has leveraged segmentation for
greater success.
Dunkin’ Donuts Launch in India
On Tuesday (5/8), Dunkin’ Donuts launched in India. However, their
products are not going to be like the ones in the US; they have changed
up their menu and their product offering quite a bit.
They will still
be offering donuts and drinks, but localized to Indian tastes, including
a mango filled doughnut and a lychee coolatta (Dunkin’s cold drink).
Because there were so few cafes offering lunch and dinner options,
they have elected to serve sandwiches in their Indian stores, as well as
the doughnuts. Although the bread used for the sandwiches is primarily
foreign to the market (bagels, croissants, etc.), the fillings are
definitely catered towards the local pallet. They are very chili heavy,
and many include vegetarian options.
In order to enter the market, Dunkin’ partnered with Jubila FoodWorks
Ltd. who also runs the Domino’s Pizza chain in India. They plan to
have 500 Dunkin’ stores over the course of the next 15 years in India.
Sources:
Saturday, May 12, 2012
#GMUCLAx WELCOME SPRING 2012 SEMESTER
English not your preferred language? Read this Trend Briefing in:
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Introduction | This year, much as in
previous years, some brands may be staring into the abyss, while others
will do exuberantly well. And while we can’t offer any help to
defaulting nations or bankrupt companies, we do believe that
there are more opportunities than ever for creative brands and
entrepreneurs to deliver on changing consumer needs. From Canada to Korea. Hence this overview of 12 must-know consumer trends (in random order) for you to run with in the next 12 months.
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