US imposes anti-subsidy duties on Chinese goods

Hong Kong News.Net
Saturday 31st March, 2007

The US has imposed duties on Chinese imports to counter China's export subsidies, reversing more than two decades of policy and creating huge 'dissatisfaction' in the Asian country.

The shift, which applies initially to imports of coated paper from China, 'reflects China's economic development' and steps up the US government's efforts to confront 'unfair Chinese trade', the Commerce Department said Friday.

The policy change, triggered by a US paper company's complaint, opens the way for steel makers, textile producers and other companies that face Chinese competition to seek similar protection.

It reflects growing calls in the US Congress to get tough on Chinese imports and pressure from the yawning US trade deficit, much of it due to US consumers' appetite for Chinese-made goods.

China is the second-largest US trading partner behind Canada. The overall US trade gap with China reached $232.5 billion last year, the largest-ever between the two countries.

The Commerce Department said Chinese coated-paper makers and exporters receive subsidies ranging from 10.9 to 20.35 percent, which the extra US duties are meant to offset.

US imports of coated free-sheet paper products from China rose some 177 percent by volume in 2006 compared to 2005 and were valued at about $224 million in 2006, the department said.

This is the first time the US is applying so-called countervailing duties to a non-market economy, revising a 23-year-old policy, the department said.

China has expressed strong dissatisfaction over the US decision.

'This action of the US goes against the consensus reached by leaders of both countries to resolve differences through dialogue,' commerce ministry spokesman Wang Xinpei was quoted as saying by Xinhua.

'China strongly requires the US to reconsider the decision and make prompt changes,' he said, adding that China would closely watch the developments on the issue and protect its own legitimate rights.

'The decision brings great harm to the interests and feelings of Chinese business people and is not acceptable,' he said.

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