Global recessions can bring out the worst in trading partners. Plunging domestic demand in both China and the U.S. has left manufacturers in both countries plagued with overcapacity. American companies are now accusing their Chinese rivals of dumping products--selling at below-market prices--in the U.S. The clash could provide the first trade challenge for incoming President Barack Obama, who must balance his promises to be tougher with Beijing against America's need for Chinese funds to finance a projected $1tr federal budget deficit.
Source: Business Week