Bloomberg News

China Says U.S. May Start More Anti-Dumping Probes on Auto Parts

February 07, 2012

Feb. 2 (Bloomberg) -- China’s commerce ministry said the U.S. may start more anti-dumping investigations into Chinese exports of automotive parts after U.S. manufacturers accused the Asian nation of providing illegal government subsidies.

“Chinese trade associations and companies should watch the developments closely and make relevant preparations,” the ministry said in a statement on its website today, without being more specific.

The Alliance for American Manufacturing said Jan. 31 that about 1.6 million U.S. jobs in the auto-parts industry are threatened by China’s illegal trade practices. The group called for federal action to protect the recovery for carmakers.

U.S. manufacturers are stepping up their push for action prior to the Feb. 14 scheduled visit of Chinese Vice President Xi Jinping to Washington for meetings with President Barack Obama on bilateral and regional issues. Chinese violations of World Trade Organization rules have contributed to more than 400,000 lost jobs since 2000, according to a report released by the alliance.

A U.S. appeals court in December rejected the U.S. Commerce Department’s imposition of duties against China for subsidizing its tire industry, saying in a ruling that U.S. law doesn’t allow the department to apply countervailing duties against products from non-market economies such as China.

Anti-dumping duties apply to goods sold overseas at or below the price in the home country. Countervailing duties aim to offset the benefits of government subsidies to industries.

--Editors: Chua Kong Ho, Frank Longid

To contact the reporter on this story: Liza Lin in Shanghai at llin15@bloomberg.net

To contact the editor responsible for this story: Young-Sam Cho at ycho2@bloomberg.net -0- Feb/02/2012 06:11 GMT


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