China fears AD/CVD petitions may damage trade relations between China and the U.S.

China has responded to the filing of antidumping and countervailing duty (AD/CVD) petitions by the Aluminium Association’s Trade Enforcement Working Group against Chinese aluminium foil product exporters. On Friday, March 10, the country urged the United States to act wisely on the antidumping case, the first of this kind in 2017.  This is the first such action the Aluminum Association has taken in its history.  The association filed the petition to the U.S. Department of Commerce and the U.S. International Trade Commission.

Wang Hejun, head of the trade remedy and investigation bureau at the Ministry of Commerce in China expressed his concern over the case as he could see substantial potential for China and the US to collaborate in aluminium foil trade. Legal actions can damage such business possibilities between both the countries.

"The U.S. needs to import premium aluminum foil products from China to meet its domestic demand while exporting theirs to China. Therefore, China hopes the U.S. government will not readily resort to exercising trade remedy measures," said Wang.

The U.S. manufacturers demanded antidumping duties ranging from 38 per cent to more than 134 per cent of the value of the imported aluminium foil from China. They justified their petition by citing the fact that Chinese products are benefitted from 27 separate government subsidy programs which make the products much cheaper than their domestic products.

Wang however, is optimistic about the collaboration between both the countries.

"Collaboration is the only way to achieve a win-win situation, and the industry (segments) from both sides need to solve their problem via negotiations," said Wang.

He requested the U.S. trade authorities to act cautiously about launching the charges that could damage mutual business interests.

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Ma Yu, a researcher at the Beijing-based Chinese Academy of International Trade and Economic Cooperation, said the U.S. manufacturing businesses accounted for the most profitable sectors as well as the highest industrial value-added sectors. They also actively diverted low-end segments to global markets.

"Taking trade remedy measures has been a frequent recourse for the U.S. to protect the interests of its companies that are backed by affordable energy advantage and strong technologies," he concluded.