China slams 'unacceptable' Australian antidumping moves

China slams 'unacceptable' Australian antidumping moves

Agence France Presse, Sydney

China warned Australia on Wednesday that restricting cheap
imports with tightened anti-dumping legislation may hamper the
burgeoning trade relationship between the two countries.

The Chinese embassy confirmed it had told the Australian
government that moves to clamp down on bargain basement imports
were harsh and "unacceptable to the Chinese side".

The warning, using uncharacteristically strong language, will
sound alarm bells in Canberra because China is currently
Australia's third largest trading partner and widely regarded as
its most promising market.

Beijing protested at not being consulted over the changes,
which would give Australian customs officers more scope to
determine if the price of goods from "economies in transition",
such as China, had been artificially altered by the exporting
government.

"Obviously this is inconsistent with the transparency
principle of the World Trade Organization (WTO) and may have
adverse impact on the further development of Sino-Australian
trade," Chinese Minister of Foreign Trade and Economic
Cooperation Shi Guangsheng said in a letter to Australian Trade
Minister Mark Vaile and Customs Minister Chris Ellison.

Shi said bilateral trade grew 16 percent last year to US$10.44
billion, including a $1.26 billion deficit for Australia.

He also pointed out the Chinese government had helped
Australia land a record-breaking $15 billion gas supply contract
in Guangdong last year.

Opposition trade spokesman Craig Emerson accused the
government of neglecting Australia's trade relationship with
China in its rush to sign a free trade agreement with the United
States.

"Australia's trade relations with East Asia have hit a new low
with the government's arrogant handling of changes to Australia's
trade rules regarding China," he said.

"This compounds the damage already done to Australia's
relations with Asia through Prime Minister John Howard's
portrayal of Australia as a deputy sheriff to the United States
in the region, his threat of pre-emptive strikes against
sovereign Asian nations and his pursuit of a trade deal with the
United States that would discriminate against our Asian trading
partners."

Vaile's office said the Australian government wanted to
maintain its strong trade relationship with China.

An Australian Customs Service spokesman said the changes were
not aimed at any particular nation or at stopping the dumping of
any particular product.

"It's all about tidying up procedures to make sure that
matters are dealt with in a fair and equitable way consistent
with WTO polices," he said. "Recommendations about dumping that
are put to the minister will be subject to a strict formula."

But the Chinese embassy said there was a ready market for
reasonably-priced Chinese electromechanical, clothing and textile
products, which "pose competition with Australia industries to
some extent".

Under WTO rules, a government can impose a duty on goods found
to have been dumped on its domestic market at below normal cost.
The duty usually lasts for five years.