The
United States International Trade Commission (USITC)
has approved an earlier decision to slap a heavy
anti-dumping and anti-subsidy tariff on a steel
product from China.
The
USITC has determined that the US industry is
"materially injured" by imports of
circular welded carbon-quality steel pipes from
China. The US commerce department had earlier
claimed these products were subsidized and sold
at a price lower than fair value.
Following
the commission's ruling, the US commerce department
will issue countervailing and anti-dumping duty
orders on imports of this product, mainly used
in heating and air-conditioning systems, from
China.
The
highest anti-subsidy duties to be implemented
are set at over 615 percent on steel pipes from
Tianjin Shuangjie Pipe Group, making it one
of the highest duties ever imposed on a Chinese
product, according to an announcement by the
US commerce department.
Chinese
companies and industry analysts said the ruling
was unjust and the allegation unfounded.
Qi
Xiangdong, a spokesman for China Steel Association,
said the heavy duties were unfair since the
government stopped providing subsidies to steel
enterprises a long time back.
Those
opposed to the ruling say the problem lies in
how imports are classified by the US. Often
US companies buy from State-owned groups and
the US concludes the products are subsidized
just because they have a government connection.
Experts
say the profit margin for this type of steel
pipes is relatively low, and believe the additional
tariff will substantially cut profits, forcing
some firms to consider leaving the US market
and seeking opportunities elsewhere.
"If
the tariff is imposed, we'll quit the US market,"
said Lin Kai, a sales manager in charge of the
US sector of Jiangsu Yulong Steel Pipe Co Ltd.
Although
trade between China and the US is on the rise,
the number of trade conflicts between the two
has also risen. The US had initiated 129 anti-dumping
investigations into Chinese products by 2007.
"There
has been an increase of anti-dumping and anti-subsidy
investigations on Chinese products in the US,
and trade protectionism is getting fiercer,"
said a recent report on foreign trade by China's
Ministry of Commerce.