Com­merce min­istry re­futes US alu­minum dump­ing claim

China Daily (Hong Kong) - - BUSINESS - By JING SHUIYU and YANG ZIMAN

The US com­plaint against Chi­nese alu­minum sub­si­dies is un­true, be­cause the in­dus­try is highly com­pet­i­tive and mar­ket-ori­ented, said the Min­istry of Com­merce.

“Re­lated loans to alu­minum com­pa­nies and their pur­chases of raw ma­te­ri­als are fully mar­ket-ori­ented and com­mer­cial­ized”, ac­cord­ing to the min­istry’s an­nounce­ment re­leased on Fri­day af­ter­noon.

“The so-called sub­sidy pro­gram is a mis­read­ing of the in­dus­try and a mis­un­der­stand­ing of the WTO rules.”

The US gov­ern­ment re­cently launched a com­plaint against Chi­nese alu­minum sub­si­dies at the WTO, charg­ing that China has ex­panded its global mar­ket share by cheap State­di­rected loans and sub­si­dized en­ergy to the in­dus­try.

The min­istry said the US re­quest for con­sul­ta­tions lacks a fac­tual ba­sis and is against WTO rules. Over­ca­pac­ity is a global is­sue and the fun­da­men­tal rea­son is the weak global eco­nomic growth, which needs to be ad­dress col­lec­tively by all coun­tries.

“China is mak­ing ef­forts to in­crease the qual­ity and per­for­mance of prod­ucts in the alu­minum in­dus­try as part of its sup­ply-side re­form, in the hope of adding more tech­no­log­i­cal ad­van­tage to the prod­ucts, rather than just price ad­van­tage,” said Jiao Jie, alu- minum an­a­lyst with Shan­dong-based bulk com­mod­ity in­for­ma­tion com­pany Sub­lime China In­for­ma­tion Group Co Ltd. In fact, China’s alu­minum ex­port vol­ume is very small com­pared with the do­mes­tic con­sump­tion. The US com­plaint is not go­ing to have a sub­stan­tial im­pact on Chi­nese alu­minum en­ter­prises’ per­for­mance, Jiao added.

Re­gard­less of ris­ing ten­sions, China and the US would be un­likely to pur­sue a trade war, as the world’s two largest economies are mu­tu­ally ben­e­fi­cial and com­ple­men­tary, ex­perts say.

Con­tact the writ­ers through jing­shuiyu@ chi­

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