One of the dangers economists and politicians have highlighted concerning the deepest recession in decades is that it gives rise to protectionist sentiment and policies that could roll back international trade.
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Is a note issued by an organisation in the US this week – warning about Chinese cars – highlighting areas of legitimate concern or, at least in tone, playing to an increasingly protectionist sentiment?
You decide.
In an extremely aggressively worded missive, the Alliance for American Manufacturing (AAM) has warned that Chery, planning US market entry, makes dangerous products based on stolen designs and flimsy construction.
The note begins: ‘If you enjoy Chinese products such as poisoned dog food, lead painted toys and toxic drywall – have we got the car for you!’
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By GlobalDataIt continues…
‘Its China ‘s Chery automobile – stolen designs, flimsy construction – and desperately trying to come to a dealer near you. Crash test video on YouTube that demonstrates its ability to crumple like a piece of tin foil in a low mileage collision are horrifying enough to appear more like a spoof than a real test.’
The note says that while Chery’s negotiations with Chrysler to make a car for the US fell through late last year, Chrysler has been in negotiations with China ‘s Great Wall Motors for a similar manufacture and export strategy. Although on hold for now, Chinese carmakers have noted publicly they are still actively pursuing strategies for entering the US market, the AAM warns.
Illegal government subsidies to Chinese manufacturers are widespread and huge, and the car industry is no exception, it says.
China’s illegal subsidies, labour abuse, lax adherence to environmental regulations, and currency manipulation leave US manufacturing running up a rocky hill barefoot with an elephant strapped to its back, AAM maintains.
The note continues on the theme of safety…
‘Based on history and crash testing, driving a Chinese car is roughly equivalent to adding wheels to a dishwasher and expecting it to survive a collision. At over 100,000 deaths per year, China leads the world in traffic fatalities.
‘Let’s not wait for the China auto anschluss – there is no time like the present for American consumers and policy makers to preemptively block these un-safe, spawn-of-cheating cars from darkening the doorstep of American roadways.’
The Alliance for American Manufacturing (AAM) says it is a ‘unique non-partisan, non-profit partnership forged to strengthen manufacturing in the US’. It brings together a ‘select group of America’s leading manufacturers and the United Steelworkers’.
‘Our mission is to promote creative policy solutions on priorities such as international trade, energy security, health care, retirement security, currency manipulation, and other issues of mutual concern,’ it says.
