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China blasts US duties ahead of Obama visit

The US slapped preliminary anti-dumping duties ranging up to 99% on $2.63 bn in Chinese-made pipes used in the oil and gas industry.

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China denounced as protectionist new US anti-dumping duties on steel pipes on Friday and called for Washington's swift recognition that it is a market economy, a week before a visit by US president Barack Obama.

The United States on Thursday slapped preliminary anti-dumping duties ranging up to 99% on $2.63 bn in Chinese-made pipes used in the oil and gas industry, in the biggest US trade action against China to date.

The commerce department issued its preliminary decision a week before Obama heads to Asia on a trip that includes stops in Shanghai and Beijing. It follows counter-vailing duties on the same product, announced in September.

"China resolutely opposes the abuse of protectionist measures, and will take measures to protect the interests of our domestic industry," the ministry said on its website on Friday.

"We hope that the US will set aside its biases and as quickly as possible recognise China's market economic status, thoroughly overcoming its double standards and giving equal and fair treatment to Chinese firms."

In trade meetings with US officials last week in Hangzhou, the Chinese side pressed for recognition as a market economy, before the 2016 deadline negotiated when it entered the World Trade Organisation. That would make it harder for the United States in future to rule in favour of such duties.

Washington promised to set up a panel to consider the issue.

"The US should give objective consideration to the fact that the fundamental problem of the concerned US industries is the fall in consumption demand brought on by the financial crisis, and thereby make a just, fair and reasonable final determination" on the steel pipe duties, the ministry said.

China may tread softly on this case to help achieve its greater goal in talks with the Obama administration, said Wang Yong, a professor at Peking University who specialises in China-US economic ties.

"Within the bounds of its laws, China may also examine anti-dumping measures against certain US products...But China does not want bickering to spoil the visit. That's a priority."

"Obama may, say, announce progress on recognising China as a market economy during the visit. So before that he needs to show people at home that China must play by the rules," said Wang.

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