America’s Commerce Department has become embroiled in a row surrounding what appear to be China’s use of tyre export subsidies, with a US Senator throwing his weight behind calls for retaliatory measures.
Widespread speculation has recently centred on China’s apparent willingness to promote its domestic auto industry ahead of foreign investors, with the latest spat fuelling the debate concerning what some regard as economic protectionism.
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The Commerce Department said it was “greatly disappointed” by the Court of Appeals for the Federal Circuit’s decision that it was unable to impose duties on what it described as “non-market economies” and has vowed to take action.
“The Commerce Department is greatly disappointed with the Court of Appeals for the Federal Circuit decision that determined the Department cannot apply the countervailing duty law to non-market economies, such as China,” said a Department statement emailed to just-auto.
“The Administration is currently considering judicial and legislative options and will take appropriate actions as soon as possible. The Commerce Department remains committed to vigorous enforcement of US trade law to ensure US companies and workers have the opportunity to compete on a level playing field.”
A spokeswoman in Washington for the Commerce Department told just-auto: “China is not considered a market economy – there are different ways anti-dumping cases are handled.”
Ohio Senator Sherrod Brown – in whose State more than 20 companies have been represented in industry petitions for relief through countervailing duties and including Titan Tire – has been particularly vocal in his condemnation of what he perceives as subsidised Chinese imports undermining businesses.
“Addressing our trade imbalance with China is essential – and to do so means we must make China play fair with the US,” said Brown. “Make no mistake. Jobs are at stake.
“After years of China gaming the benefits of WTO membership – without adhering to rules – it’s time for Congress and the Administration to act in our nation’s interest. China has not been competing – it’s been cheating.”
Brown also announced his plans to introduce a bill that would allow the Commerce Department to legally apply tariffs and other countervailing duties to Chinese imports that benefit from illegal export subsidies.
