Fight about paper causes strains in trade relation between the US and China

12/12/2007 12:00 - 994 Views

That the US is determined to put surcharge on China’s exported glossy paper from immediately encounters China’s strong opposition.
 

China opposes the US’s official surcharge on exported paper of this country.

On June 1st, many China’s officials and economists raised their voices to oppose strongly that the US asserted this country put official surcharge on glossy paper exported from China.

Several officials of China’s Ministry of Commerce believed this decision of the US would create negative impacts on trade and investment relations between these two countries.

China’s economists thought this decision limited insignificantly exports of China’s enterprises thanks to many other markets.

Vice verse, they believed that companies of the US did not make any profit from this decision and even stood negative impacts because of this import restriction. Glossy paper is imported on sheet, powdered timber under 10%, used to print high-rank products such as magazines, catalogues, labels, and other advertising publications.

As for China’s glossy paper sheet, the 2006’s exports to the US increase 177% compared to the 2005’s and the estimated value is 224 million US Dollar.

The US has not enforced the law on anti-subsidies to non-market economies since 1984. While considering China as a non-market economy, the US simultaneously enforces the law on anti-subsidies ignoring strong opposition from China. Fight about paper causes again strains in trade relation between the US and China, which is not harmonious in recent time, because of the exchange rate of Yuan (Chinese currency) and the huge trade deficit of the US.

The US has determination to put surcharge.  

On May 30th, the US asserted that this country decided to put surcharge on import glossy paper produced in China and simultaneously required customs officials to withdraw this product.

The US’s Department of Commerce (DOC) tells types of glossy paper from China, Indonesia, and Korea is sold in the US at the price that is lower than its real value. According to preliminary investigation, China’s manufacturers and exporters sell glossy paper in the US at the price that is lower from 23.19% to 99.65% than its real value.

The US’s Department of Commerce (DOC) plans to make final decisions on issues related to duties and this dumping on next October 18th. Surcharge on China’s products can be up to 99.65% if the International Trade Center confirms the US’s companies are currently under considerable impacts due to this import.

Paper manufacturer NewPage of the US laid a petition to sue enterprises of China, Korea, and Indonesia on glossy paper in October 2006. On December 15th 2006, the US’s International Trade Center (ITC) declared that paper manufacturers of this country were under impacts due to glossy paper imported from China, Korea, and Indonesia. The US’s ITC simultaneously transferred files to the DOC to investigate the types of trade infringement and to impose levels of surcharge.

On Friday, March 30th, the DOC announced preliminary decision on imposing anti-subsidies duties on glossy paper sheet imported from China.

And as said, on May 30th, the US stated that this country decided to put surcharge on import glossy paper produced in China and simultaneously required customs officials to withdraw this product.
 
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