Imports of Chinese steel racks injure U.S. industry: U.S. ITC

WASHINGTON (Reuters) - Subsidized steel rack imports from China have materially harmed U.S. industry, the U.S

Reuters August 21, 2019 04:05:44 IST
Imports of Chinese steel racks injure U.S. industry: U.S. ITC

Imports of Chinese steel racks injure US industry US ITC

WASHINGTON (Reuters) - Subsidized steel rack imports from China have materially harmed U.S. industry, the U.S. International Trade Commission found on Tuesday, locking in the Trump administration's duties on such products in the worsening U.S.-China trade war.

The ITC said it would release a full report on the issue by Sept. 27. The commission published no details on the value of U.S. producers' shipments of steel racks, saying that would amount to disclosure of proprietary data.

The U.S. Commerce Department last month said it had concluded that exporters from China had sold steel racks and parts at less than fair value, with total imports from China of such products amounting to about $200 million in 2017.

At the time, the Commerce Department determined dumping rates ranging from 18.06% to 144.50%.

It also calculated a subsidy rate of 1.50% for China's Nanjing Dongsheng Shelf Manufacturing Co., a rate of 102.23% for 16 companies that failed to respond to Commerce’s request for information and a rate of 1.50% for all other Chinese producers and exporters.

The ITC's decision locks in the duty rates for five years, when they will be reviewed for renewal.

Under U.S. law, dumping occurs when a foreign company sells a product in the United States at less than its fair value, and a countervailable subsidy occurs when financial aid from a foreign government is determined to have benefited the production of goods.

Steel racks, or storage racks, are used for short- or long-term storage of products and materials in warehouses, order-fulfillment and distribution centres, big-box retail stores and manufacturing facilities.

The United States has a dozen producers of such racks, with locations in California, Georgia, Illinois, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania. South Carolina, Tennessee, Texas, Virginia and Wisconsin.

The decision comes at a sensitive moment in the escalating trade war between the world's two largest economies, now in its second year.

U.S. President Donald Trump on Tuesday said he had to confront China over trade even if it caused short-term harm to the U.S. economy because Beijing had been cheating Washington for decades.

"Somebody had to take China on," he told reporters during a White House visit by Romanian President Klaus Iohannis. "This is something that had to be done."

Trump's decision to impose tariffs on nearly all Chinese imports have roiled global markets and unnerved investors, with global trade disruptions fuelling recession concerns around the world.

(Reporting by Andrea Shalal; Editing by Dan Grebler)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.