CHINA’S Ministry of Commerce (MOC) yesterday questioned the U.S. decision to levy heavy duties on truck and bus tires from China, promising measures to defend domestic companies’ rights.
The comments came after the U.S. Department of Commerce decided to slap anti-dumping duties of up to 22.57 percent and countervailing duties of up to 65.46 percent on certain truck and bus tires imported from China.
In response to the U.S. decision, MOC trade official Wang Hejun criticized the U.S. investigation procedures, which he said were defective and ignored facts.
Wang said the U.S. move had harmed the interests of China’s tire industry, and urged the United States to abide by the World Trade Organization rules and correct its mistakes.
U.S. imports of truck and bus tires from China were worth about US$1.5 billion in 2015, which fell to more than US$1 billion in the first 11 months of last year, affected by the investigation, according to MOC data.
The U.S. Commerce Department said late Monday it made a final finding that bus and truck tires from China were dumped at below market prices and were unfairly subsidized.
The International Trade Commission, which must find damage to U.S. industry for the tariffs to remain in effect, is expected to release its conclusion March 6.
Prinx Chengshan (Shandong) Tire Co. Ltd. faces an antidumping duty of 9 percent and other producers in China face a 22.57 percent rate, the U.S. Commerce Department said in a statement.
The U.S. Commerce Department calculated final subsidy rates of 38.61 percent for Double Coin Holdings Ltd. and 65.46 percent for Guizhou Tyre Co. Ltd. The department established a final subsidy rate of 52.04 percent for all other producers in China, the statement said.
The findings result from a probe launched last year after a petition by the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union.