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China to urge US not to levy tyre duties

(Agencies)
Updated: 2009-07-03 22:31

BEIJING: Beijing will urge US President Barack Obama to desist from imposing duties on Chinese tyres because such a step would send a worrying signal about trade protectionism, China's commerce ministry said on Friday.

The US International Trade Commission recommended on Monday that Obama impose duties of up to 55 percent on Chinese tyres coming into the United States because they are disrupting American markets.

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China's Ministry of Commerce said in a statement on its website that the recommendation "is not reasonable and lacks objective evidence, which would not only seriously hinder the normal China-US tyre trade but also hurt the interests of US tyre consumers."

An official with the fair trade bureau in the Chinese ministry said in the statement that Beijing was very concerned by the case and would firmly stand against any punitive measures imposed on Chinese tyre products.

The official added that China would urge Washington not to take any safeguard measures and not to "send wrong signals of trade protectionism".

Four members of the six-member US trade commission recommended that Obama impose additional duties of 55 percent in the first year, 45 percent in the second year, and 35 percent in the third year on imports of passenger vehicle and light truck tyres from China.

The trade commission will formally submit its recommendations to Obama in a report next month. He will then have until September to decide what, if any, action to take.