From Time Magazine:
When the U.S. Senate last February introduced a clause requiring the purchase of U.S.-made steel and iron in Washington's $787 billion stimulus package, the Chinese government decried the "Buy American" measure as a dangerous step toward trade protectionism, stressing that Beijing would not respond in kind. "We won't practice Buy China," Vice Commerce Minister Jiang Zengwei vowed, according to the state-run China Daily newspaper.
But four months later, China's resolve to avoid a showdown over trade with the West appears to have weakened as the country struggles to keep its manufacturing sector growing during recession. Instead, China, the U.S. and the European Union may be sliding toward the kind of tit-for-tat trade battle that economists warn could impede commerce and stall a global economic recovery.
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More News On U.S. China Trade Relations
China, clumsy commodities giant, making bigger waves -- Reuters
Friction in world trade -- Economist
China rebuffs US and EU over trade attack -- The Telegraph
China defends export policies against WTO complaint -- Reuters
Obama's WTO Complaint Against China -- Daily Kos
Tit for Tat on Trade -- Wall Street Journal opinion