China says unfair subsidies aided US carmakers

Article by Christian A., on May 4, 2011

China discovered that certain U.S.-built passenger cars were aided by unfair subsidies, damaging its automakers; however, Beijing sought to avoid a trade dispute with the U.S. by not hitting them with duties.

The decision may improve U.S.-China relations, which are already strained due to the appreciation of the yuan and complaints from the U.S. that Beijing is showing that it favors giant state-owned enterprises by maintaining borrowing costs at a low level.

In November 2009, China's Commerce Ministry launched the probe in an attempt to protect Chinese automakers against U.S. rivals. In 2010, U.S. exports of new and used passenger cars to China tripled to $3.4 billion, compared to figures in 2009.

In a statement, the ministry said that after a probe, the Commerce Ministry made a final decision to give subsidies to U.S. firms that build sedans and sports utility vehicles of 2.5 liters and bigger involved in dumping.

It said that China's domestic car industry had “substantial damage.” It also cited a causal link between the dumping and subsidies and the material damage. The ministry also said that the Customs Tariff Commission of the State Council has agreed that for now, anti-dumping duties and countervailing duties are being investigated.

This announcement from China arrived just days before the annual Strategic and Economic Dialogue where the different economic and diplomatic issues between the U.S. and China will be discussed. Expected to be at the center of these discussions are the trade disputes.

Topics: china, united states

If you liked the article, share on:

Comments

Recommended

Are you a big fan of legendary boxer Mike Tyson, the former heavyweight world champion? Or are you a big fan of the iconic Ferrari F50? Either way, you will...
by - February 24, 2017
It seems that AM-RB 001 hypercar is not the only vehicle project that Aston Martin and Red Bull Racing has gone into. This time, don’t expect something as outlandish as...
by - February 24, 2017
The year 2018 marks the golden anniversary of Subaru of America. Of course, the company will celebrate 50 years of being at the helm of the brand’s crusade in North...
by - February 24, 2017
During car crashes and accidents, there are times that its occupants can’t get out easily. There are times when the only way to get out of that situation is to...
by - February 23, 2017
Could this be a special version of Ferrari’s much acclaimed LaFerrari? No matter how we look at it, the patent images for this sports car from Ferrari indicate its striking...
by - February 23, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries