Monday, September 14, 2009

Globalization: Chinese Empire strikes back at America on Trade

The recent “trade spat” between China and the U.S. over Tires, Chicken and Car Parts is fascinating to observers of globalization and world trade at many levels:
  • It brings into sharp focus the nature and volume of global trade and the highly interconnected world we live in.
  • It signifies the emergence of China as a strong global player standing up to America
  • Global downturn also means countries, and more importantly politicians are extremely cognizant of local interest, domestic lobbies and voting blocks: especially local workers who are hurting with high job losses (America is experiencing a historic high of nearly 10% joblessness)
  • The few headlines on globalization and trade spats, are perhaps the tip of iceberg when it comes to issues and challenges
  • Of course, it is not just about tires and Car parts: Indians cheered when their Commerce Minister - Kamal Nath – stood up to WTO trying to protect the rights of marginalized farmers ( fearful that on top of their burdens of a crippling drought and deep debts, they will face an influx of cheap foreign crops from countries like the United States)
  • Much closer to my day-job as a Technocrat lies the issue of global restriction on movement of experts and service professionals: the H1-B visa caps or European work-visa restrictions.

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