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China conducts anti-dumping investigation against U.S. auto imports

After the two-day Sino-U.S. trade talks in picturesque city of Hangzhou, Chen Deming, Chinese Minister of Commerce, told media that China is making a preliminary anti-dumping investigation on U.S.-made vehicles, and probes on American auto imports will be “objective, fair and justified.”

Previously, Steve Collins, chairman of U.S. Automotive Trade Policy Committee, disclosed that China had informed the U.S. government of the plan to carry out an official anti-dumping probe on U.S. auto imports, which may lead to higher tariffs on cars and SUVs by Chrysler, Ford and General Motors.

“The documents containing the charges were presented by China to the U.S. this week, but have not yet been translated,” said Steve Collins. “Therefore we are not in a position to comment on the matter at this time.” He estimated the Big Three U.S. automakers would export about 9,000 vehicles to China.

President Barack Obama, who will visit China in mid-November, angered Beijing when he announced in September adding a 35-percent tariff on Chinese tire imports to the U.S. market, which totaled about $1.8 billion last year.

China’s tire output in 2008 reached 350 million pieces, of which 40 percent were for export, and 30 percent of the export headed for the United States. The high U.S. tariffs imposed on Chinese tires mean China will lose the U.S. tire market, and hence 100,000 Chinese workers may become jobless. It would also affect nearly 100,000 employees in America.

In response, China immediately appealed to the World Trade Organization (WTO) and decided to launch an anti-dumping investigation against U.S. auto imports. Chinese Minister Chen condemned that adding extra tariffs on Chinese tire imports is a serious act of trade protectionism, giving to the world a wrong signal.

Chen stressed that the Chinese government will firmly safeguard the legitimate interests of the Chinese enterprises and retain the right to take corresponding measures. China hopes all countries would work together to promote a quick recovery of the world economy.

 

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