China opposes U.S. anti-subsidy duties on oil well pipe

China opposes U.S. anti-subsidy duties on oil well pipe

news.xinhuanet.com

- China's Ministry of Commerce (MOC) Wednesday voiced strong opposition against the United States' imposition of anti-subsidy tariffs on Chinese oil well pipes, saying the move was "discriminatory."

The United States made a decision Tuesday to impose duties ranging from 10.36 percent to 15.78 percent on Chinese oil well pipes for alleged unfair subsidies.

"China is strongly opposed to the U.S. move of continuing with its discriminatory measures and arbitrarily raising the anti-subsidy duty rates," said Yao Jian, spokesman of the MOC.

Yao reiterated that the United St

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Apparently the US has slapped a tariff on China made oil pipeline/ steel and China is PO'd, claiming prior agreement against tariffs by our leaders.

Whereas, the US claims, "Chinese producers/exporters have sold OCTG (oil country tubular goods) in the United States at prices ranging from zero to 99.14 percent less than normal value."

My guess is this is the start of a trade war with China based on China's refusal to float its currency, the yuan or at least increase its value. The undervalued yuan makes Chinese goods more competitive and tends to crowd US manufacturers out of the market.

Obama recently said in China that one US goal was to regain market position for US manufactured goods so this is an apparent followup.

Apparently if China doesn't want to play fair with its currency it will face US tariffs.

news.xinhuanet.com
(visit the link for the full news article)

reply to post by plumranch


Do you think it will work?

I'm still cautious on whether this news was prearranged during Obama's visit.

But I haven't figured out what China would get in return.

Just odd that a tariff would be placed on them so quickly.

It's a good start. Many Chinese firms are gaining an unfair advantage in world markets due to the false exchange rate of the currency and government assistance. This is distorting the market in China's favour and needs to be corrected so that we have a level playing field for all.

reply to post by jam321

Do you think it will work?

Thanks!

Does anything work against China?

I think this is just encouragement. The US is only, I estimate, a third or half of China's trade. US-China Trade Statistics and China's World Trade Statistics The US can't force China to float their yuan. If we had some cooperation with say Japan, now that would help a lot!

It looks like Obama walked off the plane, called Commerce Sec. Carlos Gutierrez and said "Lets raise some tariffs on China, where do we start?" , doesn't it!

With China's centralized committee, highly testosterone charged, good old boy, top heavy government, why would raising tariffs on some pipe cause much of a stir?

We can only hope that Obama, together with his strong group of czars, Administrative cabinet and former college (and ACORN) buddies have something else planned!

China needs to adhere to the WTO agreements it signed. Many of its recent moves are counter to WTO agreements made in 2003. The tarriffs are a slap on the wrist because the US can't afford to antagonize its greatest creditor. Meanwhile China keeps pushing subtly, trying to see what they can get away with. Next thing to keep an eye out for: them demanding intellectual property like source codes that are secret, etc.

reply to post by Never Despise


Here are the US/ China WTO agreements applicable to steel which I think apply here: US/ China agremments on WTO

Safeguards * China has committed to a strong product-specific safeguard that allows the United States to address import surges. Specifically, the safeguard allows the United States to restrain increasing imports from China that cause or threaten to cause market disruption for 12 years after accession. After that, current U.S. safeguard provisions -- Section 201 -- remain available to address increasing imports. Anti-dumping * The Agreement explicitly permits the United States to continue to use its current non-market economy methodology for 15 years after China's accession to the WTO. Subsidies * China has agreed to certain subsidy rules, including rules applicable to state-owned enterprises. Specifically, where government benefits are provided to an industry sector and state-owned enterprises are the predominant recipients or receive a disproportionate share of those benefits, the United States could take action under our unfair trade laws.



[edit on 26/11/09 by plumranch]