New US anti-dumping bill to affect China
Stricter penalties will be imposed on American importers to curb the 'dumping' activities of China.india Updated: Aug 13, 2006 19:53 IST
Chinese exporters may have to shell out more to enter the huge American market if a stricter anti-dumping bill was signed into law by the US President, a trade expert cautioned in Beijing on Sunday.
The bill passed recently by Senate required American importers to submit enough customs deposits in cash to cover the full-amount of anti-dumping duties they are obliged to pay. Currently, a lesser amount of deposits in cash or negotiable notes would suffice as guarantee.
The bill intended to apply penalties 'stricter than ever' to dumping activities, a research fellow with the Research Institute of China's Ministry of Commerce, Jin Baisong said.
"Chinese companies would bear the first brunt as a lion's share of what the US government called 'dumped products' were exported from China," he said.
The bill aiming to replace the 1989 Anti-dumping Regulation in mid-2009 didn't say that it was targeting China, though.
If American importers asked to split their required customs cash deposits with Chinese exporters, domestic companies would find their profit margin narrowed by a surging operation costs. Small and medium-sized exporters may even give up the US market, Xinhua news agency quoting Jin said.
The US is China's largest export market and the second largest trade partner across the world. The Sino-US trade volume reached 211.6 billion US dollars in 2005 with China registering a surplus of 114.2 billion dollars.
First Published: Aug 13, 2006 19:53 IST