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China launches anti-dumping, anti-subsidy probe into US autos

(Xinhua)
Updated: 2009-11-06 20:02

BEIJING: China's Ministry of Commerce (MOC) said Friday it had launched anti-dumping, anti-subsidy investigations into US-made off-road vehicles and sedans with engine displacements of 2.0 liters and above.

The decision was made after the China Association of Automobile Manufacturers (CAAM) filed an application for the investigations, the MOC said in a statement posted on its website.

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CAAM, representing Chinese car-makers, said US car makers had unfairly benefited from 31 government subsidy programs. The MOC decided to investigate into 24 of them.

The ministry said it held consultation with its US counterpart on Tuesday and made the decision in accordance with China's anti-dumping and anti-subsidy laws.

The investigations would commonly be ended before November 6, 2010, but might be extended by another year if necessary, the MOC said.

The M0C announcement came one day after the US Commerce Department set preliminary anti-dumping duties on imports of Chinese-made oil pipes, which was the biggest US trade action against China.

As a result, a 36.53-percent tariff will be imposed on oil country tubular goods (OCTG) from 37 Chinese companies, while some other companies will be levied a preliminary dumping rate of 99.14 percent.

They are in addition to the preliminary extra duties of 10.69 percent to 30.69 percent which the US Commerce Department announced in September for Chinese oil pipes.

The US move drew strong objection from China.

"China is resolutely opposed to US abuse of protectionism. And (China) will take measures to safeguard the interests of domestic industry," MOC spokesman Yao Jian has said.

On September 15, the MOC said it planned to investigate the alleged dumping of auto and chicken products from the United States.