FAW-VolkswagenChina protests overUS venture steel dutiesplans Tianjin site
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 firstname.lastname@example.org to help the sector tackle cn its and longstanding liujing@chinadaily. overcapacity com.cn problems.