Chinese minister goes to U.S. on tire case

Shanghai, August 18 (Gasgoo.com) A Chinese deputy trade minister flew to Washington yesterday to lobby  U.S. administration officials against a proposal to impose punitive duties of up to 55% on imports of Chinese tires, media reported, citing the commence ministry's statement.

The Obama administration has until September to decide whether to levy the duties, in the first of a growing list of trade issues with China, after the U.S. International Trade Commission ruled in June that competition from rapidly rising imports of Chinese tires was hurting American producers.

Chinese vice commerce minister Zhong Shan will argue that slapping duties on Chinese exports would raise costs for U.S. auto manufacturers and consumers. He will meet with U.S. departments including State, Treasury, Commerce and the U.S. Trade Representative.

The duties, recommended by the U.S. ITC in late June, could reach up to 55% in the first year, 45% in the second year and 35% in the third year. China says its tire exports to the U.S. were worth $2.2 billion in 2008.

The United Steelworkers, the union that brought the tire case, says Chinese exports to the United States more than tripled in 2004-08 to 41 million tires a year. The union said that led to the loss of 5,100 American jobs.

Beijing has rejected the duties as a violation of World Trade Organization free-trade principles. Another commerce official criticized the proposal last week as protectionist, saying it would harm U.S.-Chinese trade.