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Auto Industry

China to scrap anti-dumping duties on US car imports

China has indicated it will stop levying punitive tariffs on many types of vehicles imported from the United States. The duties were originally directed in particular against General Motors and the Chrysler Group.

China's Ministry of Commerce said on its website on Friday that punitive measures related to US car imports would be terminated on December 15.

The Asian country had started levying duties on US sedans and sport-utility vehicles (SUVs) with engines of 2.5 liters and above in what it said was in retaliation for unfavorable US trade policies.

Beijing had argued carmakers such as General Motors (GM) and Chrysler had received government subsidies and dumped their vehicles onto the Chinese market, harming the domestic automotive sector.

No more complaints registered

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The Ministry of Commerce announced the anti-dumping duties would stop, because it had not received any applications for a continuation of anti-subsidy investigations.

According to state-owned auto importer China Automobile Trading, over 900,000 imported cars have been sold in China in the first 10 months of this year, up 9.6 percent from a year earlier. It said it expected the imported-vehicles market to grow by another 7 percent in 2014.

Many of the world's leading auto makers have invested heavily in producing cars in China itself, not least with a view to avoiding unfavorable import duties.

US carmaker Ford confirmed on Friday that it would hire 6,000 workers in Asia many of which would work at two new plants the company was opening in China.

hg/pfd (Reuters, AFP)

DW.DE

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