The U.S. Slaps Punitive Penalties on Chinese Woven Electric Blankets

The U.S. Commerce Department on June 28 set final antidumping duties (AD) on imports of some 55.92 million dollar woven electric blankets from China, a move might escalate trade disputes between the two countries.

"Commerce determined that Chinese producers/exporters have sold woven electric blankets in the United States at 77.75 to 174.85 percent.," said the department in a statement.

As a result of the final determination, the Commerce department will instruct U.S. Customs and Border Protection (CBP) to collect a cash deposits or bonds on imports of certain wire decking from China based on the final AD rates.

The products covered by this investigation are finished, semi- finished, and unassembled woven electric blankets, including woven electric blankets commonly referred to as throws, of all sizes and fabric types, whether made of man-made fiber, natural fiber or a blend of both, according to Commerce.

The U.S. International Trade Commission (ITC) is scheduled to issue its final injury determination on or before August 9, 2010.

If the ITC makes affirmative final determinations that imports of woven electric blankets from China materially injure, or threaten material injury to, the domestic industry, Commerce will issue an AD order.

The U.S. imports of the wire decking were valued at an estimated 55. 92 million dollars in 2009.

The protectionist moves by the Obama administration will ultimately hurt the U.S.-China trade relations, which are becoming more and more important due to the global financial crisis, economists warned.

Chinese President Hu Jintao recently called for advancing "the building of an open and free global trading regime."

"We must take concrete actions to reject all forms of protectionism and unequivocally advocate and support free trade," Hu said at the G20 summit in Toronto.

In a statement released on Sunday after the summit, the G20 leaders also reiterated the importance of anti-protectionism and free trade.

The G20 leaders decided to renew for a further three years, until the end of 2013, the commitment to "refrain from raising barriers or imposing new barriers to investment or trade in goods and services, imposing new export restrictions or implementing World Trade Organization (WTO)-inconsistent measures to stimulate exports."