China-US Trade Friction: China launches investigation into US sorghum exports
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The Chinese Ministry of Commerce has announced an anti-dumping and countervailing investigation into sorghum imports from the US. Beijing has reiterated that it's a routine trade remedy measure and a necessary move to protect Chinese farmers. CGTN reporter, Wang Hui, has more.
Beijing says preliminary evidence and related information show the US government subsidized its sorghum exports, and that the volume of the products sent to China increased substantially beginning in 2013.
According to Chinese customs' data, from 2013 to October 2017, the price of US sorghum exports to China fell more than one-third to less than 200 dollars per ton. Volume, meanwhile, soared over 12 times, to 4.3 million tons. The US now holds almost 60% shares of China's sorghum market. As a result, that depressed prices for Chinese growers, who saw falls of more than 170 US dollars per ton in the past five years.
GAO FENG, SPOKESMAN MINISTRY OF COMMERCE "Under the impact of American sorghum's increased volume and falling prices, Chinese sorghum production and financial conditions have been hurt."
The ministry said it ordered the investigation because the local industry included many small growers who were unable to prepare certain documentation on trade matters. The investigation should be completed by February 4th of next year, but can be extended until August 4th.
The sorghum probe comes three weeks after the US hit China with import tariffs on solar products and large washing machines. China's solar industry will be hit the hardest.
Recently, the ministry met with the associations of agricultural producers. The spokesman was questioned about whether they discussed more trade remedy measures aimed at the US.
GAO FENG, SPOKESMAN MINISTRY OF COMMERCE "We held the conference mainly to learn about agricultural trade and commerce conditions, and analyze the situation and any problems. It was not related to China-US trade friction. But some agricultural enterprises did mention problems in their trade with the US, and expressed their concerns on US agricultural imports."
Beijing reiterates that the investigation into American sorghum imports, worth about US$1 billion a year, is a normal trade remedy case.
WANG HUI BEIJING "In the investigation into sorghum imports from the US, Beijing says China will strictly follow the rules set by the World Trade Organization, as well as its own laws. Beijing also hopes the US will abide by international rules to appropriately resolve trade friction through dialogue and cooperation. Wang Hui, CGTN, Beijing."