US-China auto-part dispute brewing
It seems the trade feuds between China and the United States are yet to be over. In the latest of such standoffs, China’s Ministry of Commerce yesterday warned players in its auto industry to brace for the outcome of a possible US anti-dumping investigation likely to be initiated by the world’s top economy soon.
In statement released by the ministry,China’s domestic industry association and other players have been asked to keep a keen eye on the issue and be prepared.
This follows an announcement by the Alliance for American Manufacturing Tuesday to the effect that China’s subsidy to its auto industry has damaged the US auto parts industry leading to loss of jobs.
The alliance prevailed upon the US to halt imports of auto parts from China and launch anti-tariff and anti-dumping probes on auto parts including tires, electronic devices and engines, a move that could see the US lodging a formal complaint with the World Trade Organization (WTO).
According to an analyst at LMC, John Zeng, most auto parts that are exported to the US from China usually target the low to the middle class segment and US companies no longer manufacture them. He added that even if the US didn’t import such parts from China, it would still get them from other markets like India.
