The China government, found some indication of dumping practices (application of lower prices of export goods are sold to the importing country) in the automotive products are exported to China. This situation makes China’s domestic auto industry depressed create unfair competition.
China Minister of Commerce has conducted an investigation since November 2009 to protect local products. The indication, export cars to China from the United States tripled in the period 2010 compared to 2009, worth 3.4 billion U.S. dollars.
“After an investigation conducted by trade ministers (China) found sedans and sport utility vehicle with 2.5-liter engine to the top proven dumping action as it gets subsidies,” said the Chinese commerce minister.
As a result, information source, China domestic auto industry ‘injured’ quite severe. There is a strong relationship between the practice of dumping, subsidies and the damage caused.
Although it has been found indications of dumping, the Customs Tariff Commission of the State Council (such as Customs, in Indonesia) has not decided to take action to counter anti-dumping tariffs hoisted higher. “There has been no steps taken against products that are still investigating,” continued the ministry.
As is known, China is the most important automotive market for U.S. car brand. If anti-dumping duty imposed, the number of car manufacturers from outside China that is expected to hit is General Motors, Chrysler, BMW and marketing branch of Mercedes-Benz in the U.S..
Until now, trade ministers continued to investigate the associated subsidy provided by the U.S. government against a car manufacturer, is using tax cuts or incentives directly. The next step will be announced if the evidence is getting stronger.