Probe 'not revenge' for hefty tire tariff

Just two days after the decision by the United States to levy heavy import tariffs on Chinese tires, the Chinese government  has reacted by launching an anti-dumping and anti-subsidies investigation into automotive and chicken exports from the US.

The Ministry of Commerce (MOFCOM) Sunday did not label it as retaliation against the tire dispute, but said it acted simply in a response to domestic concerns.

The probe, which is in line with World Trade Organization (WTO) rules, follows complaints from Chinese manufacturers that US-made products entered the nation's markets with "unfair competition" and harmed domestic industries, said the ministry in a statement.

MOFCOM added it is still opposed to trade protectionism and committed to working towards global economic recovery.
US President Barack Obama's signed a document "to apply an increased duty to all imports of passenger vehicle and light truck tires from China for a period of three years" on Friday, according to the White House.

In addition to the existing duties of 4 percent, tariffs will rise a further 35 percent in the first year, 30 percent in the second and 25 percent in the third. The levy will take effect before Sept 26.
The move was met with anger in China.

Minister of Commerce Chen Deming branded the decision a violation of WTO rules, a grave act of trade protectionism and a breach of the commitment the US made at the Group of 20 (G20) financial summit in London in April.


Source: China Daily

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Posted at 12:02PM Sep 14, 2009 by admin in China Business  |  Comments[0]