In many cases of Sino-U.S. trade frictions, the US$1.7 billion case of Chinese tire special protection was regarded as the first case of Sino-American trade friction in the Obama era. The case has far-reaching impact. There are mainly three factors: First, as mentioned above, the amount is huge, and the final result is announced soon; Second, there is a strong sense of protectionism, and there are serious differences within the industry in the United States. Third, whether there is a final sanction , will be made by President Obama. According to a ruling made last month by the US International Trade Commission (ITC), in the next three years, punitive tariffs of 55%, 45%, and 35% will be levied on China's passenger car and light truck tires, respectively. The reason is that a large number of Chinese tire imports have Damage to the interests of American tire workers. This sanction proposal has been approved by the U.S. Trade Representative’s Office this month. According to the procedure, Obama will make a decision in September this year. Looking at the case's filing to the subsequent hearing, and even Obama's possible final decision, it can be said that political factors go hand in hand. For example, this special protection case against Chinese-produced tires is surprising. The complainant did not have a tire manufacturer. Instead, it was the so-called US Steel Workers’ Union, which represents the interests of workers. We know that in last year's anti-dumping lawsuit against China's spare tires, there was still Titan, a US tire manufacturer, involved in this. This time the amount was even greater, but most American manufacturers chose to oppose or remain silent. The U.S. Steel Workers Federation stated in its complaint that during the period from 2004 to 2008, the number of Chinese tires imported into the United States increased by 215%, and the total amount increased by 295%. As a result, five US tire factories closed down and 5,100 American workers lost their jobs. This situation continues and 3,000 American workers will lose their jobs by the end of this year. Regarding this allegation, at the ITC hearing, VicDelorio, the representative of the Chinese tire industry who responded to the complaint and executive vice president of the American company of Shanghai Jiatong Tire Company, pointed out that the petition was completely confusing. From a motive point of view, Chinese tires are "pulled into" the U.S. market. This is because U.S. tire manufacturers adopted a product upgrade strategy and abandoned the low-end tire market with less profit. However, Chinese tires imported into the United States are mainly low-end products, and many of them are produced by U.S. companies. In addition, from a time perspective, the large increase in tire sales to the United States began in 2007. According to Mr. Deloroo's statistics, in 2007 China's tire imports to the United States accounted for 30% of the United States imported tires, in 2008 increased to 33%. But in these two years, only two tire factories of Goodyear have closed. The reason why they are closed is based on the industrial upgrading decision made by Goodyear in mid-2006. In the final vote, ITC Vice President Daniel Pearson and Member Deanna Okun voted against it. They stated in their statement that “any trade restrictions remedy will not benefit the US tire industry, workers, the U.S. economy as a whole, and the society... the implementation of trade restrictions is more distortionary than the non-implementation of the market.†However, ITC still 4:2 ruled that the China Tire Special Security Case was established. For this result, the US industry is even more stunned. The United States Tire Industry Association (TIA), which represents the interests of various sectors of the tire industry in the United States, such as production, sales, maintenance and recycling, once again said "No" last week. In an open letter to US President Barack Obama, the TIA emphasized that the tire special security case will have four major adverse consequences for the United States: First, it will not protect jobs in the U.S. manufacturing industry. Second, it will cause tire prices to rise. U.S. consumers face fewer choices. Taking into account the current economic environment, it is equivalent to exerting “special penalties†on U.S. consumers. Third, it will lead to chaos in the US tire market. Fourth, due to the inability to purchase affordable tires, US consumers may postpone the need to replace tires, which will bring “potentially terrible consequences†to US road safety. To this end, in this open letter, Mr. Roy Littlefield, president of TIA, pointed out that Obama must reject the “pathological sanction proposal†for Chinese tires. “The current bottom line is that these measures will not only not help U.S. workers, but will also damage U.S. consumers and tire distribution. Businessmen, many of whom are hard-working individual business workers." The special case of tire protection attracts people's attention because it is different from ordinary trade friction cases. The results of general case rulings are basically determined directly by the U.S. Department of Commerce and the ITC, while the special case of tire protection must be ruled by Barack Obama personally. . Moreover, as a precedent, during the eight years of George W. Bush’s administration, the United States’ domestic industry filed a total of six special safeguard cases, four of which were established by ITC, but Bush, without exception, ended up casting a veto. If Obama approves of the ITC's ruling in the Chinese tire case, it means that the US government has changed its consistent position in the special security case. This will encourage more U.S. businesses to adopt similar measures, and the increase in Sino-U.S. trade friction will be inevitable. . A report by the well-known American think tank, the Kato Institute, warns that if Obama agrees with the sanctions, the outside world will understand that this is the direct will of the President of the United States. Therefore, the "attack actions and consequences will be far-reaching," and lead to " "Explosive trade friction" is possible. US China expert and Georgetown University professor Gu Baode told the author that in the current context of the international economic crisis, China and the United States should prudently take measures to quell this dispute, and the outcome of the outbreak of trade war will be disastrous. However, under the current circumstances, the United States should first take measures to correct the improper practices in this case with obvious protectionist colors. As the first case of the Sino-American trade friction in the Obama era, the ultimate result of the tire special security case will undoubtedly become the touchstone to test Obama’s commitment to oppose trade protectionism, and it is also a barometer to observe Obama’s real trade policy with China. Kingrantee Metals Die Casting Product Co., Ltd. , http://www.szdiecastings.com