Thursday, June 21, 2012

China Slaps New Duties on U.S.-Made Cars because it’s Damaging its Domestic Industry !

Another chapter in the tense relationship between the world’s two biggest economies, those of the United States and China, has opened today with the announcement by Chinese authorities of new duties on U.S.-made cars that are imported into the country. Reuters reported that the Commerce ministry of China said on its website that the measure, which imposes “anti-dumping” and “countervailing” duties on cars with an engine capacity of 2.5-liters and above, is effective tomorrow, December 15, and will last for two years.
The reason cited is that U.S.-based manufacturers have been, according to the statement, “dumping cars into the China market, causing damage to China’s domestic industry”.
It’s not just American carmakers but also foreign manufacturers that build cars in the U.S. that will be affected by this new tax.
GM, which has sold more than 2 million vehicles in China for the second year in a row, will have to face duties ranging from 8.9 to 12.9 percent. Chrysler’s duties range from 6.2 to 8.8 percent, while BMW and Mercedes-Benz will be hit with 2 and 2.7 percent respectively.
This movement is considered a retaliation against the U.S. government filing 12 trade cases against China since the latter joined the World Trade Organization on December 11, 2001.
China's Commerce Minister Chen Deming had said in late November that his country would fight back if other countries resort to trade protectionism.

Published by: Carscoop


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