April 01, 2007	Sunday	Rabi-ul-Awwal 12, 1428

BEIJING, March 31: China early on Saturday expressed strong dissatisfaction with a US decision to impose penalty tariffs on imports of Chinese high-gloss paper to offset government subsidies, state media reported.

This action of the US side goes against the consensus reached by the leaders of both countries to resolve differences through dialogue, commerce ministry spokesman Wang Xinpei said, as quoted by the official Xinhua news agency.

China strongly requires the US side to reconsider the decision and make prompt changes, Wang said.

Washington Friday announced that it would impose duties on imports of Chinese coated paper, reversing a 23-year-old US policy of not applying duties to subsidised goods from so-called non-market economies such as China.

The decision brings great harm to the interests and feelings of Chinese businesspeople and is not acceptable, Wang said.

The US move comes as President George W. Bush faces increasing pressure to tackle a soaring trade deficit with China that ballooned to more than 200 billion dollars last year.

US Commerce Secretary Carlos Gutierrez told a press conference that a “preliminary decision” had been made “to apply the US anti-subsidy law to imports from China. The decision was based on a case brought by US firm NewPage Corp., which contended that Chinese high-gloss paper imports were fuelled by subsidies such as tax breaks, debt forgiveness, and low-cost loans that posed unfair competition to US-made paper.China's economy has developed to the point that we can add another trade remedy tool, such as the countervailing duty law, Gutierrez said. “The China of today is not the China of years ago.”He said the Bush administration would continue to “vigorously” enforce US trade law with respect to China.

Bush has been under increasing pressure from the Democratic-controlled Congress to take bold steps to address the ballooning trade deficit with China.

Some of them charged that China's government subsidies are fueling its exports.

WASHINGTON: The United States announced in an unprecedented decision on Friday to impose penalty tariffs on China to offset government subsidies, as Washington grapples with its massive trade deficit with the world's most populous nation.

Commerce Secretary Carlos Gutierrez told a news conference that a “preliminary decision” had been made “to apply the US anti-subsidy law to imports from China.”This is the first time countervailing duties will be imposed on imports from so called non-market economies such as China.

China's economy has developed to the point that we can add another trade remedy tool, such as the countervailing duty law, Gutierrez said. “The China of today is not the China of years ago.Beijing expressed strong dissatisfaction with the US decision, saying it goes against the consensus reached by the leaders of both countries to resolve differences through dialogue,” state media reported.

China strongly requires the US side to reconsider the decision and make prompt changes, Chinese commerce ministry spokesman Wang Xinpei said, as quoted by the official Xinhua news agency.

The US move dampened sentiment on Wall Street as shares see-sawed to a mixed finish Friday with a stronger-than-expected economic data offset by worries that the trade sanctions slapped on China might spark growing protectionism.

Friday's decision was based on a case brought by US firm NewPage Corp., which contended that Chinese high-gloss paper imports were fuelled by subsidies such as tax breaks, debt forgiveness, and low-cost loans that posed unfair competition to US-made paper.—AFP