Beijing stays tough, opens door to talks
- Source: Global Times
- [08:10 September 15 2009]
- Comments
By Qiu Wei
China sought Monday to settle a trade row with the United States over heavy tariffs on imported Chinese tires through consultations, a day after Beijing warned of actions against imports of automobiles and poultry from the US.
The Ministry of Commerce (MOC) said Monday that China required talks with the US under the World Trade Organization (WTO) dispute settlement mechanism on the special safeguard measures against China-made tires.
The tariff runs counter to WTO rules and is an abuse of trade remedy measures, said MOC spokesman Yao Jian, according to a ministry statement.
"China's requirement for talks with the US is proper practice to exercise its rights as a WTO member and is a practical move to defend its interests," Yao was quoted as saying.
Beijing and Washington now have 60 days to hold bilateral consultations on the issue. If it is not resolved at the end of the period, the WTO will rule on it.
Tensions mounted in bilateral trade after US President Barack Obama Friday signed through an order to levy punitive duties of an extra 35 percent on China-made tires for cars and light trucks starting September 26. The duties will drop to 30 percent for the second year and 25 percent for the third year before being scrapped.
Xinhua quoted experts as saying that 100,000 Chinese jobs could be lost as a result of the levying of the US tariffs and that China's tire industry would be worse off to the tune of $1 billion.
The Chinese government will take positive steps to assist domestic tire makers to overcome difficulties, Vice Minister of Commerce Zhong Shan said yesterday in an online statement.
The government will also encourage tire producers to optimize the structure of their exports and develop high-end products through technological progress, Zhong said.
Beijing blamed Washington for trade protectionism and announced Sunday its decision to launch anti-dumping and anti-subsidies probes into automobile and chicken-product imports from the US.
An anonymous senior press officer at the ministry declined yesterday to specify what imported products would be covered in China's probes, saying initial investigations are underway and further details would be made available once the case was formally filed.
Industry insiders said the MOC's move will hamper the giant US auto industry, but played down its impact on domestic consumers and producers alike.
"Once the investigation finds unfair practice by the US, China will levy a punitive tax on US-made auto products. But it will have little impact on domestic auto manufacturers, as they may look for new suppliers elsewhere," Jiang Chonglong, an industry analyst, told the Global Times Monday.
"The MOC's move is not targeting US manufacturers, but the federal government. It is a blow to the White House," Jiang said.
