China retaliates against US levy on Chinese tyres

China launched anti-dumping and anti-subsidies investigations into automobile and chicken products imported from the US apparently in "retaliation" of President Barack Obama imposing a whopping 35 per cent additional import duty on Chinese tyres.

China on Sunday launched anti-dumping and anti-subsidies investigations into automobile and chicken products imported from the US apparently in "retaliation" of President Barack Obama imposing a whopping 35 per cent additional import duty on Chinese tyres.

HT Image

"China launched anti-dumping and anti-subsidies investigations into some automobile and chicken products originally produced in the US," the official news agency Xinhua quoted the Ministry of Commerce as saying.

Obama had imposed a whopping 35 per cent additional import duty on Chinese tyres in a bid to protect the domestic market, drawing the ire of Beijing which had described the measure as "protectionist" and violation of WTO rules.

The additional import duty would be in force for three years, however, it would decline by five per cent each in subsequent years.

"The additional duty to passenger vehicle and light truck tires - complementing the existing four per cent duty- will be set at 35 per cent ad valorem for the first year, 30
per cent ad valorem the second year, and 25 per cent ad valorem the third year," the White House had said.

"China is firmly opposed to this measure of serious commercial protectionism by the US, which not only violates world trade rules but also the undertakings given by the US at the G20," commerce ministry spokesman Yao Jian had said in statements posted on the ministry of commerce website.