Protectionism is on the creep.
Track the progress of the US’s Currency reform for fair trade bill (aka it’s not our fault unemployment is stuck at 10% bill) here.
The Chinese responded by raising import tariffs on chicken.
It’s best to see this as it really is – due to narrow sectional interests, the US has voted to raise the price of imports from the least cost producer, at a time when folks don’t have much money; and the Chinese have put up the price of food in a nation where ~36m people live on less than USD $2 per day.
The WSJ today reports that China is slowing down Japanese imports at their customs check points.
It’s not said, but it may be that this is in retaliation for the Japanese Government’s intervention in currency markets to weaken the JPY against that USD (the CNY is nearly fixed to the USD, so weakening the JPY against the USD also weakens it against the CNY).
More on the fx wars: http://goo.gl/byqh
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