FAW-Volk­swa­genChina protests overUS ven­ture steel du­ties­plans Tian­jin site

China Daily (Canada) - - LIFE - By By ZHUANG DUJUAN YU,in Xi’an ZHANG dujuan@chi­nadaily.com.cnMIN and LIU JING in Tian­jin

A na­tion­wide net­work of the com­pany’s car-mak­ing bases will take shape when the new one is fin­ished.”

China reg­is­tered its “strong dis­sat­is­fac­tion”Auto joint ven­ture­with the FAWVolk­swa­gen United States on Au­to­mo­tive Wed­nes­day Co for Ltd im­posingis to build im­porta du­ties­new wholeve­hi­cleof 522 per­cent onChi­nese man­u­fac­tur­ing cold-rolled­base in flat Tian­jin,steel. a move to in­crease its The pres­ence Min­istryin China,of Com­merce­where it said al­readyit would has fight four for plants fair na­tion­wide.treat­ment for its steel com­pa­nies The through con­struc­tion­the World of Trade­the new Or­ga­ni­za­tion’sbase, named set­tle­men­tNorth China mech­a­nism.Base, will start on next Wed­nes­dayThe US Com­merce­and is ex­pected Depart­ment to be fin­ished­said on in Tues­day 2018, Sun that Guowang,China’s cold-rolled sec­re­tary flat of steelthe com­pany’sprod­ucts were board, be­ing said sold at ina new­sthe US con­fer­ence­mar­ket be­lowon Mon­day.cost and with“A un­fair na­tion­wide sub­si­dies. net­work of the The com­pany’sdu­ties will car-making­in­crease by bases­more thanwill five­fold­take shapethe im­portwhen the prices new on one Chi­ne­seis fin­ished,”made col­drolledSun said, addingflat that steel it prod­ucts,will help the which com­pany brought in bet­ter $272.3 meet mil­lion the of needssales thereof con­sumersin 2015. na­tion­wide.China’s Min­istry of Com­merce Ac­cord­ing­said theUSto Sun, has with adoptedan in­vest­men­tun­fair prac­tice­sof 19.5 dur­ing bil­lion an­tidump­ing yuan ($3 and bil­lion), anti-sub­si­di­es­the new plant in­ves­ti­ga­tion­sis ex­pecte­don to Chi­ne­se­make 300,000 prod­ucts, cars which­per year. se­verely harmed FAW-Volk­swa­gen­the rights of Chi­ne­seis a en­ter­prises to for­mally de­fend them­selves.

The min­istry said that be­cause the US re­fused to levy sep­a­rate rates on Chi­nese State-owned en­ter­prises, the com­pa­nies were forced to give up on their re­sponse to the probe, which has re­sulted in high puni­tive taxes on steel prod­ucts from China.

joint ven­ture be­tween the FAW Group and Volk­swa­gen Group that makes Audi and Volk­swa­gen ve­hi­cles in China.

It has be­come one of the coun­try’s top car mak­ers since its foun­da­tion in 1991.

FAW-Volk­swa­gen’s four cur­rent China bases urged in the Chi­naUS to are fol­low lo­cated theWTOrulesin the north­east­er­nand cor­rect city­its wrong­do­ings.of Changchun, the south­ern Cold-rolled­c­ity of Foshan, steel theis used south­west­ern in au­to­mo­tive city of body Chengdu, pan­els,and the ap­pli­ances, eastern ship­pingc­ity of Qing­dao, con­tain­ers re­spec­tively.and con­struc­tion.

The Wei bases Zeng­min, man­u­fac­tured­se­nior an­a­lysta to­tal withof 1.65 in­dus­trial mil­lion ve­hi­cles in­for­ma­tion last year, providerand aim Mys­teel.com,to reach an said an­nual since out­put­last of July3 mil­lion when ve­hi­cles Wash­ing­tonby 2020, be­gan ac­cordin­gits an­tidump­ingto the com­pany’s probe fore­cast. in­ves­ti­ga­tion into Cover­ingthe main­land’s108 hectaresteel prod-of ucts, China’s monthly steel ex­ports to the US had re­duced sharply from mil­lions of tons to dozens of tons cur­rently.

“The US has a plan to re­vive its man­u­fac­tur­ing in­dus­try, but it should be done through tech­nol­ogy up­grad­ing in­stead of trade pro­tec­tion like this,” Wei said.

He said the rul­ing will not af­fect Chi­nese steel­mak­ers in land,the short­the new term base since is their lo­cated steel at ex­ports Tian­jin to Eco­nomic­the US mar­ket& Tech­no­log­i­cal had al­ready fallen Devel­op­mentto less than Area. 1 “The per­cent lo­ca­tionof to­tal is steel near ex­ports.one of north­ern“For cold-rolledChina’s main flat ports, steel, which par­tic­u­larly,makes it con­ve­nient­the month­ly­for lo­gis­tics,”ex­port from Sun China said. to the US is aroundWhat 60,000he said tons, re­ferred which tois a Tian­jin­drop in Port,the ocean,” which heis 45 said. kilo­me­ters But ex­pert­s­away from said the the base. Chi­nese gov­ern­men­tWhen put into and op­er­a­tion, com­pa­nies the should base be will pre­pared re­quire for 6,000 fur­ther em­ploy­ees,talks with the main­lyUS on from the lo­cal is­sue, and tak­ing sur­round­ingthe is­sue se­ri­ously,ar­eas of in TEDA.case it spreads to other types of The prod­ucts. au­to­mo­bile man­u­fac­tur­ing “We in­dus­trycan­not is un­der­es­ti­ma­teone of the pil­larthe case in­dus­tries­based on of the TEDA, vol­ume which in­volved. has Even­thoughitwill­not­gath­ered world­known af­fect Chi­nese ve­hi­cle com­pa­nies­mak­ers in­cludin­gin the short Toy­ota term, Mo­torit mat­ters Corp aboutand the whether do­mes­tic Chi­nese gi­ant Great com­pa­niesWall Mo­tor Corp.

The in­dus­try yielded nearly a mil­lion whole-ve­hi­cles last year, the types of which cover SUVs, sedans, new en­ergy and spe­cial­have re­ally ve­hi­cles. dumped or re­ceived

un­fair“Thanks sub­si­diesto the or ma­turenot,” said in­dus­try ZhouMi, in se­nior TEDA, re­searchit will fel­lowbe easyat the for us Chi­ne­seto re­cruit Academy skilled of work­ers,” In­ter­na­tional Sun Trade said, and adding Eco­nomic that the Co­op­er­a­tion.new base will also at­tract Any tradeits com­po­nentspro­tec­tion prac­tice­sup­pli­ers can trig­gerto fol­low dis­putes­suit. be­tween

the “Their two com­ing coun­tries will and save lead us to more global cost trade for war, lo­gis­tics,he said. and make China’sthe in­dus­try Min­istry hereof Fi­nance­flour­ish said more,” onWed­nes­dayhe said. that it will

main­tain its tax re­bate pol­icy Con­tact­for steel the ex­ports writ­ers at as part of its zhang­min@chi­nadaily.com.ef­forts to help the sec­tor tackle cn its and long­stand­ing li­u­jing@chi­nadaily. over­ca­pac­ity com.cn prob­lems.

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