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As trade tensions between US and China mount, Beijing orders importers of US sorghum to pay deposits

China on Tuesday ordered importers of US sorghum to pay deposits for possible higher tariffs in an anti-dumping investigation, adding to growing trade conflict with Washington.

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China on Tuesday ordered importers of US sorghum to pay deposits for possible higher tariffs in an anti-dumping investigation, adding to growing trade conflict with Washington.

A preliminary ruling by the Commerce Ministry said US sorghum was being sold at improperly low prices, hurting Chinese farmers. It said importers must post bonds of 178.6 percent of the value of their goods to cover possible anti-dumping duties while the probe is completed.

Beijing launched the sorghum investigation on Feb. 4 in what some business people saw as a warning shot as President Donald Trump hiked tariffs on Chinese-made washing machines and solar modules.

Since then, Trump has threatened to raise duties on up to USD 150 billion of Chinese goods in a dispute over technology policy. Beijing has responded with its own list of U.S. goods for possible retaliation.

The measures on sorghum, a grain used in animal feed and for making the fiery traditional Chinese liquor baijiu, target farm areas that voted for Trump in 2016. China is one of the biggest foreign markets for US sorghum growers.

Investigators concluded dumping of US sorghum "substantially damaged" Chinese competitors, the Commerce Ministry said. It said prices of US sorghum fell 13 percent from 2013 to 2017, while shipments increased 14-fold.

The US Treasury at the end of March said that they were not afraid of going into a trade war with China. US President Donald Trump initiated a series of actions against unfair trade practices of China, including taking steps to impose additional tariffs on a number of Chinese items amounting to USD 60 billion. The US has trade deficit of USD 500 billion per annum. China has said it would retaliate.

India, too, said it would not take sides in the ongoing trade spat between US and China amid differences with Beijing over its controversial Belt and Road Initiative (BRI)

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