On Dec. 10, the Commerce Department issued a ruling requiring Chinese tiremakers exporting OTR tires to the U.S. to pay an additional duty of 2.38% and 6.59%, the amount the U.S. government figures the tire companies have received in subsidies from China’s government.
The Chinese Ministry of Commerce claims the U.S. expanded the range of its investigation and used erroneous subsidy rates.
“The unfair ruling not only violates U.S. domestic law and multinational regulations, it also demonstrates a prejudice against Chinese enterprises and a bias against China’s economic development model,” the Chinese government said in a published statement. “It would foster trade protectionism within the U.S. and damage the benefit of Chinese corporations to a degree that would not be acceptable by Chinese government and its corporate world. The Chinese side would reserve further action to protect the rights of our corporate interests.”
China claims the U.S. investigation singled out three Chinese tiremakers: Hubei Star Bright Tire Co., Huizhou Tire Co., and Tianjin United Tire & Rubber International Co. The Commerce Department ruled the three will have to pay countervailing duties of 2.38%, 3.13%, and 6.59%. Other Chinese OTR tire exporters will be subject to a charge of 4.44%.
The Commerce Department is expected to make its final ruling in February. (Tire Review/Akron)