【09.09.14 N.Y 】 China takes aim at U.S. auto parts and chicken products

渔音谦谦

In latest export salvo, China takes aim at U.S. auto parts and chicken products                           
Daysafter Obama announces plan to impose a 35% tariff on tires importedfrom China, the Chinese Ministry of Commerce says it will look at'unfair trade means' allegedly aiding U.S. products.

http://www.latimes.com/news/nationworld/nation/la-fi-china-tires14-2009sep14,0,322091.story
Reporting from Beijing - China fired back against proposed tariffs onChinese tires imported to the United States by announcing Sunday thatan anti-dumping and anti-subsidies investigation would be launched onU.S. auto parts and chicken products, state media reported.

Themove could signal the start of more trade tensions between the massivetrade partners at a time when the two economic powers are expected tolead the globe out of the financial crisis.

"This case isperceived as a turning point in U.S.-China relations and likely torepresent a trend toward subtle, if not overt, forms of protectionismfrom both sides," said James Zimmerman, a partner in the law firm ofSquire Sanders & Dempsey in Beijing.

"American business inChina should be prepared for what might be a zealous retaliatoryresponse from China, which might impact a broad range of U.S.commercial interests," he said.

At the urging of the U.S.International Trade Commission, President Obama announced Friday thathe would impose a 35% duty on automobile and light-truck tires importedfrom China.

The federal agency, acting on an appeal from theUnited Steelworkers union, found that a surge of Chinese tires haddisrupted the U.S. market and cost thousands of U.S. jobs.

Obama'sdecision was a major victory for U.S. labor unions but was opposed bymyriad U.S. business groups, including leading tire manufacturers andagricultural groups that rely on the Chinese market.

Chineseofficials lambasted the decision, accusing the U.S. of engaging inprotectionism and violating World Trade Organization rules. They arguedthat the U.S. tire industry had long ago abandoned the low-end marketthat China covets and said Chinese tire imports had increased only 2.2%between 2007 and 2008, state media reported.

By announcing theprobe of U.S. imports, the Chinese Ministry of Commerce signaled thatit was prepared to challenge Obama's decision.

"Recently, thecommerce ministry has received word from domestic industries indicatingthat [chicken and auto] products had entered our nation's markets viadumping, subsidies and other unfair trade means," the ministry said onits website, giving no details about the specific products.

TheU.S. exported $1 billion worth of auto products to China in the firstsix months of this year, up 9.1% from the same time last year, statemedia said.

U.S. agriculture groups had written Obama opposingthe tariff, saying the China market was the difference between beingprofitable and unprofitable for many.

When China joined the WTOin 2001, it agreed to safeguards that allowed the U.S. to impose dutiesif it was determined that a surge in Chinese imports threatened U.S.producers and caused a market disruption.

The UnitedSteelworkers estimated that 4,000 to 5,000 U.S. tire manufacturing jobshave been lost since 2004 as a result of Chinese imports.

Statemedia said an estimated 100,000 Chinese jobs and $1 billion in exportscould be lost because of the tariffs, which would begin Sept. 26.

"Itwas a misuse of the special safeguard measures and sent a wrong signalto the world," Chen Deming, China's minister of commerce, said Saturday.

Experts say China could redirect its tires to another country, which might also feel inclined to impose duties.