China condemns US duties

China denounced as protectionist new US anti-dumping duties on steel pipes and launched its own investigation into imports of…

China denounced as protectionist new US anti-dumping duties on steel pipes and launched its own investigation into imports of US-made automobiles today, a week before a visit by President Barack Obama.

It also called for Washington's swift recognition that China is a market economy, which would make it harder for the United States to declare Chinese products are dumped.

The United States yesterday imposed preliminary anti-dumping duties on $2.63 billion in Chinese-made pipes used in the oil and gas industry, in the biggest U.S. trade action against China to date. That follows counter-vailing duties on the pipes, announced in September.

"China resolutely opposes the abuse of protectionist measures," China's Commerce Ministry said on its website.

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Mr Obama will visit China for several days from November 15th and trade disputes are likely to feature prominently.

China's investigation would target sedans with engine capacity of two litres and above, as well as sports utility vehicles, the Commerce Ministry said, issuing a long list of incentives and tax breaks granted by the US federal government and the state of Michigan.

"We hope that the US will set aside its biases and as quickly as possible recognise China's market economic status, thoroughly overcoming its double standards and giving equal and fair treatment to Chinese firms," it added.

In trade meetings with US officials last week in the city of Hangzhou, the Chinese side pressed for recognition as a market economy, before the 2016 deadline negotiated when it entered the World Trade Organisation.

"We hope that the US will abide by the principles of free trade and non-discrimination in trade under WTO rules in handling this issue," said vice minister of commerce Yi Xiaozhun.

Washington promised to set up a panel to consider the issue.

"The US should give objective consideration to the fact that the fundamental problem of the concerned US industries is the fall in consumption demand brought on by the financial crisis, and thereby make a just, fair and reasonable final determination" on the steel pipe duties, the ministry said.

SUVs and other imported luxury cars have become more common on the streets of Beijing in the past year, while Chinese car stimulus measures have helped boost domestic sales of the family cars made in China by Chinese and foreign manufacturers.

Reuters