U.S. Special Measures for China's Tire Special Insurance Measures Have Been Determined to be Unlawful

On August 10, 2010, a U.S. court ruled that the U.S. Department of Commerce’s illegal anti-subsidy and anti-dumping duties on Chinese tires was illegal, and the U.S. Department of Commerce’s Deputy Minister Francisco Sanchez stated on Tuesday that the Ministry of Commerce is currently studying the decision.

Sanchez said: "Before my colleagues and I sort out the direction of the future, I do not want to add speculation."

The U.S. International Trade Tribunal last week ruled on the Sino-American tire case and found that the U.S. Department of Commerce improperly imposed anti-dumping and countervailing duties at the same time. The ruling requested the Ministry of Commerce to abandon the countervailing duty.

However, it is generally expected that the U.S. Department of Commerce or other parties will file an appeal.

The US Department of Commerce had not imposed countervailing duties on Chinese goods for many years, saying that it was difficult to estimate subsidies for "non-market economies."

However, due to heavy pressure from Congress, the Ministry of Commerce changed its policy several years ago and imposed countervailing duties on a variety of Chinese goods.