Chinese Ministry of Commerce has strongly opposed US DOC’s recent decision to levy anti dumping and countervailing duty on light walled rectangular pipe and tube from China.

MOC claimed that the use of anti subsidy measures infringes US rules and the tradition of not adopting anti subsidy measures against non market economies, which has been practiced since 1984. MOC said this move is contradictory to the World Trade Organization Agreement on Subsidies and Countervailing Measures.

It added that US Department of Commerce’s false determination and calculation of the subsidies, and consecutive anti subsidy measures against Chinese steel products, greatly hurt the interests of Chinese industry and is not acceptable to China. It said China is studying the US determination and will act actively.

It added that the frequent requests for anti subsidy probes into Chinese exports made by US industries are not conducive to the normal development of the bilateral trade relations.

US Department of Commerce initiated antidumping duty and countervailing duty investigations on imports of light walled rectangular pipe and tube from China on July 17th 2007 and US International Trade Commission made affirmative determination that the product from China materially injured US industry on August 10th 2007. US Department of Commerce made final determination on June 13th 2008. Commerce determined that Chinese producers/exporters have sold rectangular pipe in the United States at 249.12% to 264.64% less than normal value. Commerce also determined that Chinese producers/exporters received net countervailable subsidies ranging from 2.17% to 200.58%.