House Passes Bill to Address China Subsidy

by Eugenie on March 6, 2012

“The House voted on Tuesday to ensure that the United States could impose duties on subsidized goods from China and Vietnam, overwhelmingly rejecting a conservative group’s attempt to portray it as a tax increase.”

“‘China distorts the free market by giving enormous subsidies to its producers and exporters, and our companies and workers should not be expected to compete against the deep pockets of the Chinese government,’ Dave Camp, a Michigan Republican who is chairman of the House Ways and Means Committee, said during debate.”

While this initiative is meant to protect the American industry, it could prove a threat to Walmart as it increases the trading fees for its Chinese and Vietnamese imported goods which constitute an important part of their low-cost products and thus would reduce their gross revenue if not compensated for.

Reuters. “House Passes Bill to Address China Subsidy .” The New York Times.
N.p., 6 Mar. 2012. Web. 6 Mar. 2012. <

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