Beijing hits out at US duty on steel pipes
Beijing has rebuked Washington for slapping a duty of as much as 30.69 per cent on Chinese-made steel pipe used to transport oil, putting Sino-US trade relations to a new test.
The Ministry of Commerce said yesterday it was 'strongly opposed' to the levy - ranging between 10.9 and 30.69 per cent - being imposed on the US$2.6 billion business after the US Department of Commerce found Chinese products were supported with unfair subsidies.
The levy means the US is standing behind the United Steelworkers Union, US Steel, Maverick Tube Corp and other manufacturers that have complained about the adverse impact on the industry of the Chinese imports.
'The duty is absolutely unacceptable,' ministry spokesman Yao Jian said.
Yao said the US government's incorrect insistence that Chinese steel firms received government subsidies had led to the decision to impose duties on the products and jeopardise the interests of mainland companies.
The US decision ratchets up frictions between the two countries in the lead-up to September 17, when US President Barack Obama is due to decide on another trade case involving tyre imports from the mainland.
The United Steelworkers Union has blamed the imports for the closure of several US tyre factories and the loss of more than 5,000 manufacturing jobs.
Beijing state leaders and the Ministry of Commerce have complained about the US initiating investigations leading to anti-dumping and countervailing duties on Chinese-made imports, moves that the Chinese labelled protectionist measures.
Under yesterday's decision, the US Department of Commerce will require importers of Chinese steel pipe to post bonds or cash deposits to cover levies based on the department's estimate of the amount of subsidies mainland producers had received.
Zhejiang Jianli Enterprise was subject to the highest preliminary duty of 30.69 per cent, followed by Wuxi Seamless Pipe, with a duty of 24.92 per cent, and Jiangsu Changbao Steel Tube, at 24.33 per cent.
A preliminary duty of 10.9 per cent will be imposed on Tianjin Pipe Group, and 21.33 per cent on all other Chinese producers of steel pipe.
A final decision on the size of the countervailing duties is due by November 23. It also requires final approval from the US International Trade Commission in early January.
Trade friction
Chinese steel pipe used to transport oil will be subject to US duties of up to: 30.7%
