China Upset by New U.S. TV Duties

BEIJING/HONG KONG -- China called a U.S. move to impose anti-dumping duties on Chinese televisions discriminatory, in the latest flare-up in trade tension between the two countries, according to a Reuters report.

The U.S. Commerce Department ruled Monday that televisions from four Chinese firms were being sold in the United States at less than fair value and announced provisional duties of 28 to 46% on the sets.

China's Commerce Ministry reacted strongly, saying on Tuesday the decision, which followed a move last week to limit Chinese textile imports, amounted to "serious discrimination" and "unfair treatment" of its firms.

U.S. television makers and unions complained that imports from China and Malaysia had grown to 2.65 million sets a year in 2002 from 210,000 two years earlier. No ruling was made against Malaysian televisions.

China said it was "gravely concerned" over the TV decision, but stopped short of saying if it would hit back, said Reuters.

Just days after the textile decision, Beijing announced it would raise duties on some U.S. goods, but said that was in response to U.S. tariffs on steel imposed a year and a half ago.

Chinese soybean, cotton and wheat-buying teams that were to have gone shopping in the United States ahead of a trip there by Premier Wen Jiabao next month also canceled their visits.

The U.S. moves come as booming Chinese factories have become important suppliers to major U.S. retailers such as Wal-Mart, boosting the trade deficit with China to a record $103 billion last year.

With excess capacity creating margin-crushing competition at home, Chinese television makers have used their low production costs to sell more TVs abroad, said Reuters.

Importers bringing televisions from China would be required to post cash deposits or bonds pending announcement of final anti-dumping duties in April, the U.S. Commerce Department said in a statement. It is unusual for duties not to be imposed once a preliminary decision has been announced.

Other U.S. industries -- including iron pipe and bedroom furniture makers -- have also sought protection under anti-dumping laws.