Ford, GM and Chrysler CEOs are on the Hill for the second day today, pleading their case before the lawmakers.  At the today’s hearing, the company executives disclosed how much they might each apply for, if Congress approved the $25 billion loan package: $10 billion to $12 billion for GM; $7 billion to $8 billion for Ford; and $7 billion for Chrysler. The money is intended to pay employees, cover current operating costs and develop new products.  There is little enthusiasm thus far for the bailout to the automakers in Congress, it’s doubtful that any measures to designate bailout funds to the Detroit Three will be enacted in the lame-duck session.

All major U.S. stock exchanges traded down by the end of the morning session.  The Dow was down almost 163 points; Nasdaq down 43 points, or 2.9%; and S&P 500 was down almost 24 points, or 2.78%.  Stocks declined on the new Department of Labor report that consumer prices fell 1% in October for the biggest one-month decline since the records were kept in 1947; on continuing troubles in the U.S. auto industry; and problems in the credit and banking sectors.

Just as American companies are asking for and in some cases getting financial aid from the government, Chinese companies are getting some government “help” as well: in the form of bureaucratically imposed limits on the lay-offs.  Companies in two Chinese provinces, Shandong and Hubei, have been told they must seek official consent if they want to lay off more than 40 people.  Because of China’s stalled economic growth, thousands of factory workers in China have already been laid-off.  Maybe, a trade investment agreement with Cuba could help?  Chinese Premier Hu Jintao has been touring Latin America, and he has stopped on the island of Cuba for the first time since his previous visit in 2004.  President Hu agreed to continue buying nickel and sugar from Cuba and to send food aid to the island. China is now Cuba’s biggest trading partner after Venezuela, with bilateral trade at $2.3 billion in 2007. 

The U.S., on the other hand, imported $321 billion worth of goods from China last year.  Some of these goods, like children’s toys, pet food, and toothpaste were not safe for consumption.  The F.D.A. has opened its first oversees inspection office in Beijing today. The F.D.A. offices in China will include eight officials described as “inspectors and senior technical experts in foods, medicines and medical devices,“ who will work with their Chinese counterparts to ensure the quality standards of foodstuffs and consumer goods “at the point of manufacture.” Given the astounding volume of goods that come in the U.S. from China, the ability of these 8 F.D.A. staff to really impact the quality of Chinese exports is, well…obviously limited.  AAM has long advocated for the case of “Safe Trade.” The threat of dangerous imports is ubiquitous and a comprehensive approach, not just a new office—the tiniest dot on the map of the world,–to solving the problem is needed.

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