Subscribe to this Blog

Subscribe Via Email

Enter your email address:

Monday, July 16, 2007

Hints of a China v US Trade War

China has banned shipments of US food products from Tyson and other companies citing contamination of the food products.  This appears to be a counter response to US Customers actions halting the shipment of fish shipments from entering the US border.

Many types of Chines fish products grown on fish farms have been identified to contain unauthorized levels of antibiotics in the fish.  Chinese fish farmers treat their fish with antibiotics to counter over crowded and poorly maintained fish farms.  The fish are kept healthy enough to go to market with the antibiotics.

Many other Chinese products have come under fire recently from toothpaste to poisonous childrens' cough syrup killing kids in Latin America. With a US economy that is heating up from inflated energy prices and a $9.5 trillion deficit, a trade war could be extremely bad for the US and for China both. 

If this type of tit for tat reaction spreads to other areas from simple Wal-Mart products to consumer electronics and more, we could be marching towards a significant show down.  A trade war could cause significant disruptions in products for US businesses and consumers from food, to iPods to Dell Memory, to kids toys, back to school supplies and much more.