China-US business relations are becoming strained on a few fronts.
Just this week, China has ordered a review of what it calls 'chemical dumping' by the US and EU in China.
The investigation is aimed at discovering whether or not the US and EU has been selling perchrlorethylene at lower than market cost, in order to undercut competition. Domestic companies in China have complained that they could not compete with the US and European giants.
The chemical, which is highly toxic to the environment, is used extensively in commercial enterprises, chiefly the dry cleaning industry.
This marks the second attempt by China to control imports, as just last week it ordered another inquiry into unwelded pipes imports.
These measures are seen by some as a retaliatory gesture for the US and Europe's dispute on solar panel products and telecom equipment, in addition to petitions from other large economies to stem the piracy of foreign products and patent infringement.
The European Union in fact, is considering a 47% tariff in Chinese solar panels, and a further inquiry on telecom products producers Huawei and ZTE.
Tariff on solar panels are already in place in the US for Chinese solar panels that were adopted to aid nascent photovoltaic enterprises in the US who would be crushed by the Chinese competition without the protective measure.
Source : France 24/ 5.31.13
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