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Ministry of Industry and Information Technology: trade friction intensifies 2018 Aluminum exports face challenges

iconMar 1, 2018 10:38
Source:SMM

SMM3, March 1: on March 1, the Ministry of Industry and Information Technology released an article on the operation of the non-ferrous metal industry in 2017 and consideration of its work in 2018. it was mentioned in the article that with the continuous breakthrough in the technology of China's aluminum industry, the competitiveness of aluminum products in the international market has been increasing. For the sake of their own interests, the international trade friction against China's non-ferrous metal products is becoming more and more serious, and the export situation is facing great challenges. Following the "332" hearing on China's aluminum industry last year, the United States this year launched a "232 investigation" and a "301 investigation" on imported aluminum products. On August 8, the United States ruled that Chinese aluminum foil exports to the United States received subsidies ranging from 16.56 percent to 80.97 percent; On October 27, the US Department of Commerce announced that it would levy import tariffs on imports of aluminum foil originating in China, initially set at 96.81% ≤ 162.24%; On November 28, the US Department of Commerce launched a double reverse investigation into the import of ordinary alloy aluminum plates from China. this series of trade protection measures are very detrimental to the export of China's deeply processed aluminum products.

As early as April 2017, the Commerce Department believed that imports of steel and aluminum products seriously damaged the domestic industry and threatened the national security of the United States. On this basis, recommendations are made to President Trump to impose tariffs, quotas and other import restrictions on imports of steel and aluminum products. The U.S. Department of Commerce then investigated the import of steel and aluminum products under section 232 of the Trade expansion Act 1962 and submitted the two reports and recommendations for trade protection measures to the White House on January 11 and 19 this year, respectively. Trump will decide on whether and what trade protection measures will be taken against imports of steel and aluminum products on the basis of the report by April 11 and April 19.

On August 8, 2017, the US Department of Commerce announced the results of the initial ruling, finding subsidies for aluminum foil products imported from China, ranging from 16.56% to 80.97%. "the US Department of Commerce has initially ruled that there is a subsidy for aluminum foil made in China.

On February 27, 2018, the US Department of Commerce announced the final adjudication results, finding that aluminum foil products imported from China were dumped and subsidized. The final ruling was that the dumping margin of aluminum foil products exported from China to the United States ranged from 48.644% to 106.09% and the subsidy margin ranged from 17.17% to 80.97%. According to US procedures, if the US International Trade Commission makes a final ruling in April, it finds that such products imported from China cause substantial damage or threat to relevant US industries. The Commerce Department will require the United States Customs and Border Protection Agency to impose anti-dumping and countervailing (double countervailing) duties on related products. Otherwise, the Commerce Department will stop the investigation. "View details

China: strong dissatisfaction

Wang Hejun, director of the Trade Relief Bureau of the Ministry of Commerce of China, said that judging from the investigation process and results, the US side still ignores WTO rules and seriously harms the interests of Chinese aluminum foil exporters, and China expresses strong dissatisfaction with this. He said: with regard to the wrong practices of the US side, China will take the necessary measures to safeguard its legitimate rights and interests. Wang Hejun stressed: as early as more than 20 years ago, American aluminum enterprises voluntarily withdrew from the production of aluminum foil with lower added value and switched to producing aluminum products with higher profits. Therefore, the decline in aluminum foil production and market share in the United States is the commercial choice of American companies, not caused by imported aluminum foil. He said: the unreasonable and excessive use of trade relief measures by the United States will not only fail to achieve the "revival" of the aluminum foil industry in the United States, but will affect domestic employment in the United States and harm the welfare of the vast number of American consumers. "strongly dissatisfied, measures will be taken!" Commerce Department responds to US double reverse ruling on Chinese Aluminum foil

"Wang Hejun: China and the United States continue to cut high tax rates on iron and steel products in China

"[SMM Analysis] the pattern of Aluminum Import and Export under Act 232 China and the United States should attach importance to peace

Other side: the US side violates the principle of Free Trade

Japan's steel industry wants the country not to be subject to any import restrictions in the United States because imports of steel from Japan do not pose a threat to the national security of the United States, the president of the Japan Iron and Steel Association said Tuesday. Japan's steel industry said last week that the Commerce Department's recommendation to President Trump to impose restrictions on steel imports violated free trade principles and called on the US government to make cautious and appropriate decisions. "View details

A senior EU official said it was unreasonable for the US to impose tariffs on steel and aluminium imports from other NATO members in the name of national security and disagreed with claims that imports of aluminium and steel threatened US national security. "View details

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