China hits out at US in fresh trade spat November 7 2009
China accused the US of protectionist and biased trade policies yesterday - only a week before President Barack Obama's first visit to Beijing.
In a stinging rebuke to Washington, China's commerce ministry promised to take measures to protect its domestic industry after the US slapped anti-dumping duties on $2.6bn (€1.8bn, £1.6bn) of Chinese steel pipe imports .
The issue joins a growing list of bilateral trade conflicts , despite high-level peace talks in China last week which had appeared to strike something of a truce.
"China resolutely opposes such protectionist practices and will take steps to protect the interests of our domestic industries," Yao Jian, a commerce ministry spokesman, said on its website. "The US should give objective consideration to the fact that the fundamental problem of the US industries in question is the fall of demand brought about by the financial crisis."
The decision by the US commerce department, which imposed tariffs of up to 99 per cent on some Chinese steel pipes, follows a move earlier in the week by the US, the European Union and Mexico to file a formal complaint at the World Trade Organisation against Beijing's restrictions on exports of specialised raw materials.
The latest trade spat threatens to hang over Mr Obama's three-day visit to China, which begins next weekend. Last month, his administration levied 35 per cent tariffs on vehicle tyres made in China. In response, the Chinese have opened investigations into US exports of poultry on the grounds of safety and into cars and car parts because of the state aid these industries have received.
Lawyers in Beijing say government officials have raised the issue of state aid to push China's case to be awarded market-economy status, which would make it harder for the US to bring anti-dumping cases against Chinese products.
"They are trying to show that every country's markets have imperfections," said a US trade lawyer in Beijing.
In its statement yesterday, the Chinese commerce ministry said: "We hope that the US will set aside its biases and act as quickly as possible to recognise China as a market economy."
At the Sino-US meeting in Hangzhou last week, Gary Locke, the US commerce secretary, promised to set up a panel to consider the issue.
China agreed at the talks to allow US imports of pork and to relax restrictions on importing wind-power components.
However, Paulo Soares, head of Chinese operations for Suzlon, the Indian wind-power group, said the new rules would make little difference. "The big companies already have installed manufacturing operations and established supply chains, so it is not going to change anything," he said.
Meanwhile, Mei Xinyu, a researcher at a think-tank connected to China's commerce ministry, said: "We should be aware of this kind of trend of western countries using the WTO and free trade as an excuse to challenge us.
"Western countries adjust their own trade policies depending on the market needs of their own interest group. Their policies are not consistent either."
The rebuke came as a US trade panel approved two new investigations yesterday into charges of unfair trade practices by China.
In a stinging rebuke to Washington, China's commerce ministry promised to take measures to protect its domestic industry after the US slapped anti-dumping duties on $2.6bn (€1.8bn, £1.6bn) of Chinese steel pipe imports .
The issue joins a growing list of bilateral trade conflicts , despite high-level peace talks in China last week which had appeared to strike something of a truce.
"China resolutely opposes such protectionist practices and will take steps to protect the interests of our domestic industries," Yao Jian, a commerce ministry spokesman, said on its website. "The US should give objective consideration to the fact that the fundamental problem of the US industries in question is the fall of demand brought about by the financial crisis."
The decision by the US commerce department, which imposed tariffs of up to 99 per cent on some Chinese steel pipes, follows a move earlier in the week by the US, the European Union and Mexico to file a formal complaint at the World Trade Organisation against Beijing's restrictions on exports of specialised raw materials.
The latest trade spat threatens to hang over Mr Obama's three-day visit to China, which begins next weekend. Last month, his administration levied 35 per cent tariffs on vehicle tyres made in China. In response, the Chinese have opened investigations into US exports of poultry on the grounds of safety and into cars and car parts because of the state aid these industries have received.
Lawyers in Beijing say government officials have raised the issue of state aid to push China's case to be awarded market-economy status, which would make it harder for the US to bring anti-dumping cases against Chinese products.
"They are trying to show that every country's markets have imperfections," said a US trade lawyer in Beijing.
In its statement yesterday, the Chinese commerce ministry said: "We hope that the US will set aside its biases and act as quickly as possible to recognise China as a market economy."
At the Sino-US meeting in Hangzhou last week, Gary Locke, the US commerce secretary, promised to set up a panel to consider the issue.
China agreed at the talks to allow US imports of pork and to relax restrictions on importing wind-power components.
However, Paulo Soares, head of Chinese operations for Suzlon, the Indian wind-power group, said the new rules would make little difference. "The big companies already have installed manufacturing operations and established supply chains, so it is not going to change anything," he said.
Meanwhile, Mei Xinyu, a researcher at a think-tank connected to China's commerce ministry, said: "We should be aware of this kind of trend of western countries using the WTO and free trade as an excuse to challenge us.
"Western countries adjust their own trade policies depending on the market needs of their own interest group. Their policies are not consistent either."
The rebuke came as a US trade panel approved two new investigations yesterday into charges of unfair trade practices by China.
