China Raises the Stakes in Chicken Trade War with US

CHINA - China is to levy additional duty on imports of US poultry meat.
calendar icon 5 February 2010
clock icon 2 minute read

China will levy initial anti-dumping duties ranging from 43.1 to 105.4 per cent on US chicken products exported to China, the Ministry of Commerce has said, in a move likely to further aggravate trade ties.

The ministry's initial investigation showed that US companies had dumped chicken products into the Chinese market, according to the ministry's web site, according to an official source.

The investigation was announced after the US imposed safeguard duties on Chinese-made tyres, which China is now fighting at the World Trade Organisation.

Chicken wings and feet, which are virtually worthless in the US market, are a delicacy in China. Many US poultry producers count on the Chinese market to round out their profits.

Companies that appealed the finding will see duties of 43.1 per cent to 80.5 per cent on their products, with US companies that active investor and lobby in China getting the lowest rate.

Those that did not appeal would pay duties of 105.4 per cent, the ministry said.

The duties begin on 13 February (Chinese New Year's Eve), thus helping ensure that prices of the popular delicacies do not rise in a Chinese market that already faces vegetable price inflation.

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