China's Commerce Ministry said it would impose anti-subsidy and anti-dumping duties on imported cars made in the United States, the latest in a series of trade spats between the world's two largest economies.
China's Commerce Ministry said on Wednesday it would impose anti-subsidy and anti-dumping duties on imported cars made in the United States, the latest in a series of trade spats between the world's two largest economies.
The duties, to affect major U.S. auto maker General Motors , Chrysler Group, Ford Motor Company and U.S.-based foreign automakers, will begin from Thursday and last two years, a statement on the ministry website (www.mofcom.gov.cn) said.
Cars that have engine capacity at or above 2.5 litres will be hit with duties, the statement said.
U.S.-China trade tensions have been mounting in recent months, particularly in the solar industry, where tit-for-tat trade probes have underscored leaders' warnings of a rising tide of protectionism amid gloomy global economic forecasts.
The ministry's statement said U.S. cars and sport utility vehicles benefited from subsidies and had been dumped into the China market, causing "substantial damage to China's domestic industry".
The amounts of the duties will range from 2.0 percent to 21.5 percent.
Under the new policy, anti-dumping duties on GM cars stand at 8.9 percent, with the rate for models made by a BMW plant in the U.S. at 2.0 percent, the ministry said.
Chrysler will be hit with anti-dumping duties of 8.8 percent, with duties for other unidentified U.S. automakers set at 21.5 percent.
Cars made by GM are also subject to a 12.9 percent anti-subsidy duty, while the rate for Chrysler models is 6.2 percent, it added.
Ten years after China joined the World Trade Organization, experts say it is likely to become more deeply enmeshed in trade disputes.
More problems for Beijing at the trade governing body will be partly due to its ever-expanding trade footprint, but also because many of its trading partners have growing concerns over what they see as state support for strategic industries.
The United States has filed trade 12 cases against China since it joined the WTO, five since U.S. President Barack Obama took office.
China's Commerce Minister Chen Deming said in late November the country is likely to fight back if other countries resort to trade protectionism.
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