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The following article was published in our article directory on September 4, 2010.
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China aluminum material is convicted of improper subsidies

Article Category: World Affairs

Author Name: Amanda xzh

U.S. Department of Commerce on Aug. 31 declined to RMB exchange rate policy constituted unfair subsidy investigation. But it is also a preliminary ruling, the Chinese aluminum exports to the U.S. presence acts of unfair subsidies. However, this did not make the U.S. industry, and some argue that satisfaction of the Members to suppress the yuan. Related to the Information Office of Chinese Ministry of Commerce 1, told reporters that the U.S. allegations of Chinese enterprises is neither consistent with WTO rules, do not have any basis in fact. In the United States refused to investigate whether China welcomes the exchange rates used subsidized exports of Tong Shi, He Weiwen China WTO Research Association reminded the U.S. that Bingbu Yiwei Zhao RMB exchange rate issue in the occurrence of the nature of Gai Bian Shi Chang.

U.S. Department of Commerce, said in a statement, there is not enough evidence to show that the Chinese Government on RMB exchange rate through a direct export subsidies, decided not to investigate. Earlier this year, the U.S. aluminum company a few small and medium sized joint complaint says China to manufacture doors and windows, auto parts and other aluminum products manufacturers inappropriate subsidies, the U.S. aluminum industry adversely. The statement that the Chinese manufacturers enjoy export subsidies, much of it from government manipulation of the RMB exchange rate, so that Chinese exporters an unfair price advantage. U.S. coated paper industry in another currency issue complaints also made the same request. U.S. Department of Commerce began investigating in April. Import Administration 31, while the Ministry of Commerce preliminary ruling, the Chinese government last year's aluminum exports to the U.S. to provide 514 million U.S. dollars in improper subsidies will impose import aluminum ranging from 6.2 to 137.7% of the countervailing duty. Allegedly, the final decision to be made in November of this year.

Department of Commerce decided to let the United Steelworkers mixed, they found the Chinese aluminum exports of government enjoy huge subsidies are pleased, but refused to investigate whether manipulation of the RMB exchange rate constitutes a subsidy is extremely disappointing. The Federation said: "Department of Commerce does not stand up and protect American workers and manufacturers of interest, turn a blind eye to our own interests." Tamen called on Congress to take effective action recommendations to the RMB exchange rate through Duncu bills Cuoshi to China accountable. This echoes the requirements of some U.S. congressmen. U.S. "Washington Post" said, has been supporting such measures, New York Democratic Senator Charles Shumo criticized the Ministry of Commerce of the decision is "one-sided" and said Obama "still blind to obvious facts. Have ready-made opportunity to take action, but inaction. "

According to the United States, "International Business Times" website reported on August 31, the House Ways and Means Committee will be held this September 15 hearing in support of legislation to resolve the issue of RMB exchange rate and group members will testify.

The decision of the U.S. Department of Commerce, Associated Press analysis, said China's imports of the United States decided to impose punitive tariffs on aluminum is forced by congressional pressure, but also wanted to maintain good relations with China, because China is in response to the global economic crisis, environmental issues and North Korea nuclear problem with Iran is playing a key role, the United States refused to highly sensitive in political support for the RMB exchange rate on the allegations of U.S. companies. "Washington Post" that although the ruling is preliminary, but it sends a strong signal that the U.S. government will not intervene in the exchange rate with trade rules to the problem. The paper believes that the U.S. Treasury has been reluctant to China's yuan policy is too harsh, favor a diplomatic negotiations to resolve this problem, to avoid problems with China on exchange rate conflict. But Obama in the November mid-term elections are still faced with enormous pressure to come up with a new plan to reverse the economic situation.

Information Office of Chinese Ministry of Commerce stakeholders on the 1st of the "Global Times" said that under the relevant WTO agreements, the exchange rate does not constitute a trade subsidies. Hope that the U.S. trade remedy investigations in strict compliance with WTO rules. He

Weiwen, analysts say, the U.S. Commerce Department refused to make an investigation of the RMB exchange rate subsidies because of the lack of legal basis. At present, the U.S. Congress is pressing ahead with legislation in this area. Not long ago, the U.S. House of Representatives has adopted a target of 1930, "Customs Law", including the "exchange rate subsidies," the legislative acts. U.S. Congress resumes in September this year, the Senate also passed the same version of the bill, it can be signed into law. So said the U.S. government's move is only temporary, for the future direction of the RMB exchange rate issue needs to continue to monitor closely.

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