By Denna Bomwan
China’s Ministry of Commerce expressed “deep regret” at a US trade panel ruling that the influx of imported Chinese tyres is harming the domestic industry.
Yao Jian, a spokesman for the Commerce Ministry, commented on the tyres ruling by the US International Trade Commission: “China has repeatedly expressed its opposition to foreign governments’ using safeguard clauses to launch investigations of Chinese products.
“The decision does not conform to objective facts, and also violates relevant World Trade Organisation rules in addition to U.S. law.
“We hope the U.S. will fully consider the actual situation of this case and proceed from the overall interests of the two countries’ industries.”
The ITC voted 4-2 in favour of the petition filed by the United Steelworkers union which called Chinese tyre imports to be capped at their 2005 level.
GITI, the Shanghai-based tyre manufactures, said in a statement it was ‘disappointed’ with the decision.
The company said US tyre makers have been scaling back their offerings in the low-cost tyre segment, where Chinese tyre makers now compete.
‘If there is a barrier placed on tyres produced in China, we believe that US manufacturers will simply increase importation of tyres from other countries,’ the company said in a statement.
The International Trade Commission ruling has no immediate repercussions, but the group is scheduled to meet again later this month to determine a recommendation to the White House on the issue.