BEIJING - China will levy countervailing duties of up to 31.4 per cent on some chicken products from the United States, a move that could further strain ties between the two major economies.

The Ministry of Commerce said that US chicken producers have been receiving unfair subsidies and these had hurt the competitive position of Chinese companies.

US companies exporting white-feather chicken products and which had submitted information to its investigation would face duties of 3.8 to 11.2 per cent, while those that had not complied with Beijing's requests would face the higher rate, the ministry said in a statement.

Starting from Friday, Chinese firms buying white-feather chicken products from the United States will need to pay a deposit to the customs authority in line with the duty, it said.

The preliminary ruling on countervailing duties comes on top of anti-dumping duties of up to 105.4 per cent that China imposed on the US chicken products in February.

China began its investigation of US chicken imports after the United States imposed safeguard duties on Chinese-made tires, which China has challenged at the World Trade Organisation.

Chicken feet and wing tips, virtually worthless in the US market, are a delicacy in southern China. Many US poultry producers count on the Chinese market to round out their profits.

Trade frictions add to a range of bilateral disputes from military to environmental issues, with US calls that China let its currency rise being the most serious source of contention at present. Leaders of the two countries will meet in Beijing in late May for their annual Strategic and Economic Dialogue, in an attempt to address some of the concerns.