China introduces antidumping tariff for US chicken products by Zuzana Zelenakova

China represents No.1 market for US chicken products. Only recently it has issued objections that the United States of America are bringing the chicken goods onto the Chinese market at unfair prices. As a result the domestic chicken industry suffers. In an attempt to solve this problem, China is introducing antidumping tariffs of up to 105.4 percent on the American imports starting February 13. “Chicken feet and wings are not wanted in the U.S. so they sell them to China, they dump them below cost,” said Wang Xiulin, president of the Chinese Poultry Association.“For over a decade, the U.S. has sent big volumes of chicken to the Chinese market, hurting pro! ducers here. Last year, the Chinese poultry industry was really hurting so we asked for this investigation.” The investigation that began in September last year showed that importers selling at below market prices caused “material damage” to local producers, they are to be punished by paying penalties. There is a rising tension between the two countries due to several trade disputes. The investigation over the chicken imports prices was initiated only several weeks after the United States imposed tariffs on Chinese tires, one of many articles on the list of Chinese exports that face US duties. The tensions between two superpowers are escalating also due to issues regarding the value of the yuan, US arms sales to Taiwan or a planned meeting between President Obama and the Dalai Lama. The Tibetan spiritual leader is considered a separatist by Beijing, that tries to isolate him from foreign leaders. "Conflicts will be accompanied by cooperation," said Niu Xin! chun, a researcher at the China Institutes of Contemporary Int! ernation al Relations. "The Obama administration would balance its attempts to contain China and its willingness to cooperate with it."

related story (sgx16380): http://www.france24.com/en/20100205-china-usa-trade-chickens...

by Zuzana Zelenakova for SigEx Ventures (http://sigexventures.com)

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