Preview of Obama's China visit: Trade protection hurts both sides

From punitive tariffs on Chinese tires and steel pipes, to an anti-dumping probe into American auto parts, trade disputes between China and the US are multiplying. Today, US President Barack Obama will begin his first state visit to China. CCTV reporter Wang Guan takes a look at how the trade spat hurt both economies and what experts think his trip will mean for the economic future of the two nations.

CCTV reporter, Wang Guan, said, "I am here at one of the largest tire factories in northern China. A third of its tires used to be sold in the US. New US trade measures raised import duties on Chinese tires like this, from 4 to 39 percent. What that means is here in this factory in the past two months, it has been no business as usual."

The company's management says they suspended most of their tire exports to the United States.

It's not hard to understand their situation if we do the math. Suppose a tire's price when it leaves China, is 30 US dollars. After 35 percent of the newly imposed tariff is added to the original four percent and factor in shipping costs, when it touches the US shore its price has doubled. It's now more expensive than U.S. made tires. And in a stagnant economy, cheaper prices are what consumers reach for first.

The bad news for Chinese tire companies is also bad news for American tire producers.