Last Updated: October 29. 2009 1:00AM
China to probe U.S. carmakers
Nation will look into auto dumping; higher tariffs might be levied
Christopher S. Rugaber / Associated Press

Washington -- China has told the United States that it will take steps that could lead to higher tariffs on imports of autos made by General Motors Co., Ford Motor Co. and Chrysler Group LLC.

Steve Collins, president of industry trade group the American Automotive Policy Council, said Wednesday that U.S. officials have told Detroit's three automakers that China is expected to begin an investigation under anti-dumping laws into their business practices.
If the investigation, to begin as early as next week, concludes that the companies receive government subsidies, or sell products in China at below-market prices, China could slap tariffs on U.S. auto imports.

The move is the latest trade dispute between the two countries, which are already fighting over steel pipes, chicken products, and pirated movies and music. The trade spats worsened after the Obama administration last month announced up to 35 percent duties on Chinese-made tires for the next three years.

The U.S. auto companies export about 9,000 cars to China annually, Collins said. GM builds and sells more than a million cars a year in China, though those sales wouldn't be affected. Mercedes-Benz, BMW and Nissan also export cars to China from U.S. plants, but those won't be included in the investigation.

An e-mail to a spokeswoman for U.S. Trade Representative Ron Kirk was not returned.

GM spokesman Greg Martin said GM wanted to study the documents before commenting. Ford spokesman Mike Moran and Chrysler spokeswoman Linda Becker deferred comment to the trade group.

http://detnews.com/article/20091029/...U.S.-carmakers

 

If it only affects the cars being imported to China and not the cars being built in China then this is hardly a blip on the radar.

 

Just another trade spat, expect more of these, without much impact.