China to probe U.S. auto parts for alleged dumping

ERJ staff report (TB)

Beijing -- The Ministry of Commerce of the People's Republic of China has launched anti-dumping and anti-subsidy investigations of auto parts imported to China from the US.

Chicken from the US is also being investigated for alleged dumping and subsidies, according to the ministry press release. The ministry said it was instigating the investigations after receiving complaints from Chinese manufacturers. However, some observers say it is difficult not to see the announcement as retaliation for the Obama administration's Sept. 11 issuance of tough new tariffs against Chinese passenger and light truck tyre imports.

The US tariffs, which go into effect Sept, 26, are 35 percent the first year, 30 percent the second year and 25 percent the third.

Stuart Gosswein, director of federal government affairs for the Specialty Market Equipment Association (SEMA), said the trade group is still in the process of digesting the events of the past few days.

A week before President Obama's tariff order, China announced it would cancel its policy of charging 25-percent tariffs on certain auto parts. The World Trade Organisation ruled in 2008 that China's tariffs on auto parts violated its policies.

From Tire Business (A Crain publication)