Free Trade: China vs. America

This is about free trade, but it's also about lousy reporting. First, let me tell you where I stand on the issue of free trade -- I'm for it. I'm for NAFTA, I'm for trade with China. But, if I'm for free trade, I'm also for fair trade. If it's not fair, it means the market isn't fair. That undermines everything.

This matter came to mind regarding the current kerfuffle about America slapping a tariff on Chinese tires. At first glance, you might think, "Well, I can certainly understand that. Why is America undermining free trade --because that is, in essence, what happens when you apply tariffs on imports. Also, when the Chinese threaten to retaliate by halting the importation of chicken "paws" (the feet) from the U.S., you may think, "That's understandable."

"You only begin to get a glimmer of insight into the real problems in the very last paragraphs, of an article on this subject in the Sept 14 issue of the NY Times, where it reads, "The bigger risk for China, economists and corporate executives have periodically warned, is that trade friction could cause multinationals to rethink their heavy reliance on Chinese factories in their supply chains. The Chiness targeting of autos and chickens affects two industries that may have the political muscle in the US to dissuade the Obama administration from aggressively challenging China's policies. (I believe that refers to China's unfair trade policies.)

"General Motors sees much of its growth coming from its China subsidiary, the second-largest auto company in China after Volkeswagen. And the farm lobby in the US has long pressed for maximum access to a market of 1.3 billion mouths.

"But spotlighting automotive trade may be risky for China. G.M. and Ford both rely mostly on local production to supply the Chinese market, while China is rapidly increasing auto parts shipments to the U.S."

What exactly is meant by that last paragraph? Here is what I do know, although it's not mentioned in the article: Cooper Tire wants to have a factory in China. And the reason is obvious; namely, to get lower cost. And, here is what China tells Cooper Tire. Go ahead and build your factory here in China. We think that's great. However, all your production must be exported. You may not sell any of the tires from your new China factory within China.

To me, that's not free trade. China is saying it's fine to manufacture in China, but don't even think about competing in the Chinese market. That would be like us telling Toyota they could assemble cars in the U.S. made from U.S. parts, but that none of the cars could be sold here. They'd all have to be sold in Japan, or wherever.

That's not free trade. And, that leaves me with only one question; namely, why can't the NY Times with greater lucidity?