National aluminum profile is improperly subsidized in the United States

In 2009, the United States imported 514 million US dollars of aluminum from China, accounting for 20.1% of the US market share. CFP data

The U.S. trade protection "big stick" has turned to the Chinese aluminum industry. The US Department of Commerce refused to investigate whether China’s exchange rate policy constituted an improper subsidy on August 31 local time, but made a preliminary ruling that there was an improper subsidy for China’s aluminum exports to the United States. The subsidy ranged from 6% to 137%. .

At the same time, the U.S. Department of Commerce rejected all the charges of *** exchange rate subsidies proposed in the double reverse case against China. In a statement, the U.S. Department of Commerce stated that the U.S. domestic manufacturers accused the U.S. Department of Commerce of its anti-subsidy investigation by accusing the U.S. exchange rate policy of unfair subsidies in two countervailing cases related to China’s imports of aluminum profiles and coated paper. . However, domestic manufacturers in the United States failed to prove that the Chinese exchange rate system benefited the specific companies or industries surveyed, and thus failed to meet the statutory requirements of the investigation.

Final decision in November

According to the US procedure, in addition to the U.S. Department of Commerce, trade-relief cases need to be decided by the U.S. International Trade Commission. According to the current schedule, the U.S. Department of Commerce will finalize the case in November this year. If both agencies make a positive final ruling, the US Department of Commerce will require the customs to impose countervailing duties on related products.

In the preliminary ruling made by the U.S. Department of Commerce, three Chinese companies, Liaoyang Zhongwang Aluminum Co., Ltd., MilandLuck Ltd. and Dragonluxe Ltd., were heavily punished on the grounds that their government subsidies were as high as 137.65%. Therefore, the countervailing duty rate for its products is as high as 137.65%. The countervailing duty rates for Chinese companies that have provided information voluntarily, such as Guangya Aluminum Co., Ltd., Foshan Guangcheng Aluminum Co., Ltd., Yongji Guanghai Aluminum Co., Ltd., and Zhaoqing New Central Asia Aluminum Co., Ltd., are set at 6.18%. 10.37% range.

Yesterday, Ms. Ding Xing, the exporter of Guangya Aluminum Co., Ltd., told the Morning Post that the reason for the lower anti-subsidy tax rate of the company was that it actively cooperated with anti-subsidy investigations and actively provided related information and data.

$514 million market

Guo Yongan analysts Sun Yongliang and Kang Kai wrote in an analysis that China's aluminum exports to the United States belong to the low-margin industry. If heavy taxes are applied, there will be little profit. Therefore, after the implementation of anti-dumping duties, China Exports will drop sharply.

Aluminum profiles are products made by extrusion processing of aluminum alloys. They are widely used and can be used for window frames, solar equipment, frames, etc. They can also be used for the structure and decoration of automobiles, trucks and boats.

According to public information, China is the largest exporter of aluminum profiles in the world, and its share in the aluminum profile market in 2009 has reached 20.1%. According to the data provided by the United States, from 2007 to 2009, the United States imported aluminum profiles from China increased by 90%, and the import value in 2009 was about 514 million US dollars.

According to a report in the Wall Street Journal on August 30th, after the anti-dumping victory of the US steel industry, several small and medium-sized aluminum companies in the United States united to claim that Chinese-made aluminum profiles hurt Alcoa from 2007 to 2009. Canada and Australia have also made similar claims with the U.S. Department of Commerce.

Chinese Ministry of Commerce counterattack

Affected by the financial crisis, the US economy has continued to slump, leading to the rise of domestic trade protectionism. Coupled with political factors such as the imminent US Congress’s midterm elections, the United States has frequently implemented trade remedy measures against Chinese products.
On August 26, the U.S. Department of Commerce announced plans to strengthen counterattacks against unfair international trade and tightened 14 recommendations on trade remedy measures from government implementation and regulation adjustments, many of which are aimed at non-market economy countries. Some of the proposals may lead to higher anti-dumping or countervailing duties on Chinese goods, and impose penalties or impose stricter requirements on foreign companies that sell unfairly priced or subsidized products in the United States.

The Chinese Ministry of Commerce issued a statement yesterday and expressed serious concern over the latest practice of the US to implement its export strategy.

The statement said that for many of the 14 recommendations, the US court has made a ruling in previous judicial actions, including that the US Department of Commerce should not adjust export taxes and value-added tax in anti-dumping cases. By adjusting trade remedy survey methods to increase import restrictions, not only will it not benefit the rise of US industry competitiveness, but it will also cause other countries and regions to follow suit and chain reactions and disrupt international trade order and rules. The statement said that he hopes that the United States will handle it carefully and avoid making trade remedy measures a protectionist tool.