BEIJING - China fired back against proposed tariffs on Chinese tires imported to the United States by announcing Sunday an anti-dumping and anti-subsidies investigation of U.S. auto parts and chicken products, state media reported.
The move could signal the start of more trade tensions at a time when the two economic powers were expected to lead the way out of the global financial crisis.
"This case is perceived as a turning point in U.S.-China relations and likely to represent a trend toward subtle, if not overt, forms of protectionism from both sides," said James Zimmerman, a partner in the law firm Squire Sanders & Dempsey in Beijing. "American business in China should be prepared for what might be a zealous retaliatory response from China, which might impact a broad range of U.S. commercial interests."
At the urging of the U.S. International Trade Commission, a federal agency, President Obama announced Friday that he would impose a 35 percent duty on automobile and light-truck tires imported from China.
The decision was a major victory for U.S. labor unions but was opposed by myriad American business groups, including leading tiremakers and agricultural groups that rely on the Chinese market.
Chinese officials lambasted the decision, accusing the United States of engaging in protectionism and violating World Trade Organization rules. They argued that the U.S. tire industry had long abandoned the low-end market that China covets and said Chinese tire imports had only increased by 2.2 percent between 2007 and 2008, state media reported.
China said it imported $1 billion of U.S. auto parts in the first six months of this year.
Source: Minneapolis Star Tribune
