Ministry of Commerce: US Automakers Received Illegal Subsidies, Dumping

Certain US-made "saloon cars and cross-country cars (of a cylinder capacity >2500cc)" have received subsidies from the US government and/or been dumped on China, causing harm to the latter’s auto industry, China’s Ministry of Commerce says in an initial ruling issued on Saturday.

The Ministry started the anti-dumping probe on 6 Nov. 2009 after CAAM (China Association of Automobile Manufacturers) complained that US automakers selling cars to China had gained an unfair advantage from government subsidies.

For the time being, no anti-dumping or anti-subsidy duties will be imposed, as the Ministry gives involved parties 10 days to submit written comments and evidence and promises further deliberation based on new materials.

The Ministry lists the dumping margins of investigated US-based automakers as below:

1. General Motors LLC, 9.9%

2. Chrysler Group LLC, 8.8%

3. Mercedes-Benz U.S. International, Inc.2.7% 

4. BMW Manufacturing LLC, 2.0%

5. American Honda Motor Co, Inc. 4.4%

6. All Others, 21.5%

Ad valorem subsidy rates:

1. General Motors LLC, 12.9%

2. Chrysler Group LLC, 6.2%

3. Mercedes-Benz U.S. International, Inc., 0%

4. BMW Manufacturing LLC, 0%

5. American Honda Motor Co, Inc. 0%

6. All Others12.9%