- CNTV English - CCTV News

Homepage > News > Biz >

U.S. auto imports face anti-dumping duties

12-15-2011 10:02 BJT

by Li Fangfang and Ding Qingfen

BEIJING, Dec. 15 (Xinhuanet) -- Anti-dumping and anti-subsidy duties will be placed on vehicle imports from the United States for two years, the Ministry of Commerce said on Wednesday.

The move is in accordance with domestic legislation and the World Trade Organization (WTO) rules, and shows China is finally learning how to protect its interests under international trade rules, analysts said.

The ministry said in a statement on its website that it will start to impose taxes on cars and sports-utility vehicles made in the US with an engine capacity of more than 2.5 liters, from Dec 15, 2011 to Dec 14, 2013.

"US vehicles benefiting from subsidies and dumping on the China market have substantially damaged China's auto industry," the statement said.

General Motors and Chrysler will be affected most by the duties.

Anti-dumping duties on GM vehicles will stand at 8.9 percent and at 8.8 percent for Chrysler vehicles.

GM vehicles will also face anti-subsidy duties of 12.9 percent while Chrysler vehicles will face 6.2 percent anti-subsidy duties.

US units of German automaker BMW and Mercedes-Benz will also be hit by duties of 2.0 percent and 2.7 percent, respectively, according to the statement.

Currently, China imposes tariffs of 25 percent on imported passenger vehicles.

Zhou Shijian, a senior expert on China-US trade from Tsinghua University, said that the move is a "proper and equal" counterattack to US trade investigations aimed at China.

"It's reasonable self-defense for China," Zhou said as he cited the US targeting imports of Chinese tires with massive duties in 2009.

"An eye for an eye is a sound way for China to face trade disputes with the US under WTO regulations."

The Obama administration imposed a 35-percent anti-dumping tariff on imported tires from China valued at about $1.8 billion, over three years. It will result in cutting China's tire exports to the US by more than 50 percent, and lead to possibly 100,000 job losses in China's domestic tire industry.

Li Zhongzhou, a former official from the Ministry of Commerce and a WTO expert from the EU-China Trade Project, also said that "China should strike back in its own good time as the US always stirs up investigations targeting China by routinely using trade remedy measures".

And "it's good to see that China has learnt to better use trade regulations to protect itself and respond to trade challenges", Zhou said.

However, Zhong Shi, an independent auto analyst based in Beijing, said that the duties will have a limited impact on US vehicle exports to China. GM Cadillac models do not have a large market share while Chrysler doesn't do much business in China, Zhong said.

GM's import volume is less than half of one percent of its domestic production in China, a company statement said on Wednesday.

"It's more of a signal that China is exerting pressure on US trade protectionist moves," Zhong said.

China imported 905,000 vehicles up to the end of November, year-on-year growth of 31 percent. Imports for the year are expected to pass the million mark. European automakers dominate the segment with about 60 percent market share.

Editor:Zhang Hao |Source: Xinhua

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program