US' 2 trade remedy actions against China

US takes trade remedy measures against China. [Photo / Beijing Times]

On July 31, the US Department of Commerce and US International Trade Commission both decided to take trade remedy measures on the drawn stainless steel sinks and tapered roller bearings imported from China.

A trade remedy is when a domestic industry of a country is facing an unfair import action or being damaged by the impact of imports, and the government of the country gives the industry supports or remedies. Main modes of the trade remedy include anti-dumping, anti-subsidy and supporting measures.

On July 31, the US Department of Commerce said in a preliminary judgment that the drawn stainless steel sinks produced in China had received governmental subsidies and the subsidy rates were between 2.12 percent and 13.94 percent. According to the latest schedule, the US Department of Commerce and US International Trade Commission will also make final judgments in October and November of 2012. If both organizations make positive judgments, the US Department will order the US Customhouse to impose anti-subsidy taxes on products of same kinds imported from China.

In March 2012, a US kitchen and bathroom supplies company lodged an accusation against China by saying that Chinese enterprises received government subsidies and were dumping goods in the United States, and therefore anti-subsidy and anti-dumping investigations were launched. The judgment made by the US Department of Commerce on July 31 is the judgment on the anti-subsidy investigation but has yet to make a judgment on the anti-dumping investigation.