China will "closely observe" further US investigations into the cases in which US companies have claimed that some Chinese exports are subsidized and sold to the United States below cost. Ministry of Commerce spokesman Wang Xinpei yesterday said this in response to the decision of the US International Trade Commission not to impose anti-subsidy or anti-dumping tariffs on imports of coated paper from China.  
 
The ITC on Tuesday overturned a ruling by the US Department of Commerce that said imports of coated paper from China and two other Asian countries are subsidized and sold in the US at unfairly low prices.
 
"A US industry is neither materially injured nor threatened with material injury by reason of imports of coated free sheet paper from China, Indonesia and South Korea," the ITC said in a statement.  
 
As a result of the commission's ruling, no anti-dumping or countervailing duties will be imposed on imports of the said product from the three countries, the ITC said.  
 
Wang said China hopes the US will strictly abide by World Trade Organization (WTO) rules, adding that the government would protect its interests and the lawful rights of Chinese companies.
 
The final ruling by the ITC has also been welcomed by the US printing industry. The industry is "a strong supporter of free and fair trade, both at home and globally", said Michael Makin, president and CEO of the Printing Industry of America (PIA), in a statement.
 
"As such, we commend the ITC's vote on certain imports and believe the ITC's determination strikes the appropriate balance between protecting domestic producers and the end-users of an internationally traded product."  
 
In this particular case, end-users of coated paper, such as US printers, would have faced tariffs on coated paper imports from these three countries that, when combined, could have equaled nearly 150 percent, he said.  
 
The US commerce department earlier this year decided to impose preliminary tariffs on imports of certain paper products from China ranging from 10.9 percent to 20.4 percent, saying Chinese exporters receive government subsidies.
 
It announced its final decision in the glossy paper case in October, deciding to slap on Chinese exporters countervailing duties ranging up to 44.25 percent and additional anti-dumping duties of up to 99.65 percent. Penalty duties on South Korean and Indonesian products were lower.
 
The ITC's decision puts an end to investigations by the US commerce department as well as the preliminary tariffs.