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The preliminary China production subsidies of up to 80% more than ten in the aluminum foil deposit to appeal counter third parity
Aug 12, 2017

The preliminary China production subsidies of up to 80% more than ten in the aluminum foil deposit to appeal counter "third parity

The United States uses South Africa as a third country and compares the cost of production in a third country to the price of Chinese products. Through the non-public calculation method, we can get the conclusion that the Chinese enterprises have the subsidy behavior......

After the company was informed by the U.S. Department of Commerce preliminary received 80.97% subsidy, a Shandong aluminum enterprise manager told reporters: the company did not receive any agency subsidies, the conclusion of the infringement of the right of Chinese enterprises. China's commerce ministry officials yesterday urged the US side to act prudently and impartially to avoid any negative impact on normal economic and trade exchanges between China and the United states.

August baked under the sun, and a little aluminum foil ignited a new round of Sino US trade friction.

In August 8th, the US Commerce Department said in a statement that China's imports of aluminium foil products to the United States were subject to subsidies ranging from 16.56% to 80.97%. According to the program, if the final at the end of this year to continue to adhere to the preliminary view, China Aluminum export enterprises will face up to 80.97% of the countervailing duty.

According to China's Ministry of Commerce official website news, in March 28th this year, the U.S. Department of Commerce announced that China's aluminum foil enterprises launched anti-dumping and countervailing investigations, the Chinese companies surveyed 230.

Shandong Acer aluminum Cmi Holdings Ltd (formerly known as the "Shandong Lufeng aluminum foil Limited by Share Ltd") is one of the United States was the "double reverse investigation of the companies involved, the company manager Yang told the" daily economic news "interview with reporters, the U.S. Department of Commerce gives the preliminary decision, has not received any punishment basis and evidence. "The United States did not advance communication and consultation, directly to the enterprise" ticket ", we are very passive, and there is no right to speak."

In August 10th, the Ministry of Commerce Trade Remedy investigation bureau chief Wang Hejun said that the United States authorities to actively cooperate with the government and enterprises ignore the China, no basis for identification of Chinese primary aluminum and power coal producers as "public institutions", to the downstream enterprises to provide subsidies, and calculate the high subsidies, bring serious negative influence to the export of China enterprise.

Over 70% imported aluminium foil comes from China

According to the US Department of Commerce statistics, in 2016, the United States imported aluminum foil products from China to 303 million 300 thousand pounds, accounting for 70.6% of the total import of the United States, compared with 2014, an increase of 38.8%.

From the price level, China's exports to the United States of aluminum foil prices are significantly lower than in other countries. 2014 - 2016, China's imports of aluminum foil customs value of 1.64, 1.57 and 1.42 U. S. dollars / pound, while the same period imports from other countries, the average price of aluminum foil is 2.49, 2.09, and 1.8 U. S. dollars / pound.

According to the advisory body still light times statistics, in 2016 China's aluminum foil exports amounted to 1 million 80 thousand and 400 tons, an increase of 13.16%. According to data released by the US Department of Commerce, the amount of products imported by the United States from China last year was about $389 million. At present, the United States has become China's largest export market for aluminum foil.

Yang told the daily economic news reporter that China's exports to the United States of aluminum foil products, coupled with tariffs after the terminal price, still more than the United States local enterprises to produce aluminum foil cheaper 20%. "The manpower cost in the United States is higher, and foil enterprise is little. Middle and low end aluminum foil products mainly produce profits in the processing link, and in this respect, our advantage is more obvious."

Industry experts have said that the aluminum foil consumption each year in the United States in about 610 thousand tons, 2014, almost no growth in 2016, imports of both its total imports from Chinese aluminum foil, the market share is relatively limited. "Aluminum foil as a relatively high degree of processing aluminum products, customers of higher quality requirements, specifications, varieties are more, not price factors can lead to an increase in trade."."

However, the reporter found that after carding, China exports aluminum foil products to the United States at the same time, also imports some aluminum products from the United States, the United States is also China's aluminum and aluminum alloy products, the largest source of imports.

According to the statistics in 2015, the age is still small, Chinese imports from the United States aluminum products 676 thousand tons, the amount of $1 billion 313 million, imported products include aluminum, aluminum, aluminum, aviation automotive aluminum castings and forgings; in 2016, China imports from the United States aluminum products have more than 50 tons, of which, 23 thousand and 500 tons of high-end aluminum, extrusion material 6460 tons, even imported 1248 tons of aluminum foil.

Wang Hejun said, the United States Agency Chinese banking market has been in spite of the fact that in the policy loan, commercial banks continue to identify China as "public institutions", through loans to domestic enterprises subsidies, and on the basis of the unreasonable foreign interest rate benchmark, calculate high subsidies; in the export buyer's credit project. In the absence of preliminary evidence of the case, the government and enterprises involved in China requirements to prove that the companies do not use the alleged credit project, wrong to shift the burden of proof to china.

Wang Hejun stressed that China urged the US side to act prudently and make fair decisions to avoid negative impacts on normal economic and trade exchanges between China and the United states.

The countervailing duty rate is about 20 times higher than the profit margin

"If the United States imposed a 80.97% countervailing duty on China's aluminum foil enterprises, no doubt, 99.99% of the Chinese enterprises would lose money," said Yang, a manager of Cmi Holdings Ltd's Shandong aluminum industry."

Yang said the manager, China's aluminum foil enterprises are completely market-oriented competition, did not receive any subsidies to institutions. The United States, in South Africa as a third country, compares the cost of production through a third country to the price of Chinese products. Through the non-public calculation method, we can get the subsidy behavior in Chinese Enterprises








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