Obama's dire tire decision raises China's ire

Late in the evening of Sept. 11, not an auspicious date, the White House issued a brief, low-key announcement on the president's decision to impose a 35 percent tariff on tires imported from China, by invoking a rarely-used section of a trade law which allows U.S. industries and labor unions to seek protection from “surges” of Chinese imports that would “disrupt” U.S. businesses.

Beijing's response was unusually swift and strong. “China is firmly opposed to this measure of serious commercial protectionism by the United States,” the Ministry of Commerce said on Sept. 13. “China reserves the right to take responsive actions to firmly protect the interests of Chinese companies.” Although the ministry was vague about the “responsive actions,” subsequent news reports said U.S. chicken and auto parts sold to China could be targeted.

Obama's decision reflected one thing: Sino-U.S. relations are indeed “complex,” as once aptly described by former secretary of state Condi Rice. Obama is anything but anti-China, who will meet Chinese President Hu Jintao in New York Tuesday, and again at the G-20 summit in Pittsburgh, where leaders of the world's largest industrialized and emerging economies will gather to discuss ways of tackling the global economic downturn. The U.S. president is also slated to pay a state visit to China in November to cement U.S. ties with China — its second largest trading partner and largest creditor.

But, as U.S. president and an elected official, Obama often has to make difficult, baby-splitting decisions. This one was especially hard, as union leaders and protectionists in Congress were pressuring him to “stand up” to “enforce our trade law.” The AFL-CIO supported him during the campaign, and Obama needs their support in his fight for health care reform. Unlike president George W. Bush who vetoed four such petitions that reached his desk, Obama faces pressures that his predecessor could afford to brush off.

Even so, his first major decision on foreign trade was a mistake. It is protectionist, blatant and unmistakable. It is against his own principles and promise that he had pledged unequivocally at previous G-20 powwows and other occasions that protectionism must be resisted and defeated for the sake of free and liberal trade. Now, however, these high-sounding words suddenly ring hollow.

When George Bush nixed such petitions endorsed by the International Trade Commission, an independent federal agency, he cited America's national interest. President Obama should also have such courage in leadership, for many reasons. First, imported Chinese tires are mostly low-end products for millions of ordinary consumers who benefit from the cheaper goods. Second, higher tariffs for tires would not be of much help for American jobs or economy.

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