China says US is dumping those chickens!

China: complaints on US chicken dumping justified

BEIJING (AFP) – China said Sunday it had grounds to start a formal anti-dumping and anti-subsidy investigation into American chicken meat imports, as tensions persist following President Hu Jintao's visit to the US.

The Commerce Ministry announcement said an initial examination that began two weeks ago into domestic chicken producers' concerns had grounds and officials would now formally investigate the US imports.

"The ministry had carefully evaluated the applications... and decided to start an investigation into unfair trade practices such as dumping and subsidies of chicken products imported from the United States," it said.

Oaktree Capital Management to Receive $1 Billion from China Investment Corp.

A Los Angeles investment firm has come out a big winner in the battle among some of world's best-known money managers vying for a slice of cash from China's sovereign-wealth fund.

China Investment Corp., which is doling out billions of dollars as it tries to profit from a global economic recovery, has committed to invest about $1 billion with Oaktree Capital Management LP, people familiar with the matter said. The big allocation comes as the Chinese fund stands poised to make a wave of investments directly into hedge funds around the world.

WSJ Article

Oaktree Capital

Obama slaps tariffs on Chinese tire imports for 3 years

President Barack Obama has decided to slap punitive tariffs on all car and light truck tires entering the United States from China.

Accordingly, Obama sides with the United Steelworkers and against free trade interests within and outside the government.

This is a risky economic and foreign policy strategy. Increasing Chinese imports of American chicken meat already have been mentioned by Chinese state media as a possible retaliatory target. Also, Beijing could sell some of its extensive holdings of U.S. Treasury debt.

A recent Washington Post editorial opposed Chinese tire sanctions.

China no longer likes the risks associated with the derivatives markets

China delivered a blow to some of the world’s biggest investment banks on Monday as it declared its support for legal efforts by some state-owned companies that want to break loss-making oil derivatives contracts with foreign institutions.

The state-owned Assets Supervision and Administration Commission of the State Council said it was investigating a number of derivatives deals and would help companies find ways to “minimise losses”.

The move is the latest by Beijing to clamp down on the over-the-counter derivatives market after a number of state companies made disastrous bets on commodity prices and foreign exchange movements, losing billions of dollars.

But it will be greeted with dismay by foreign financial institutions, already reeling from a July decision by China’s banking regulator that sought to prevent state-owned enterprises from accessing the overseas derivatives market through domestic intermediaries.

Financial Times article