Chinese Upset As Us Imposes Tv Tariffs

Chinese trade officials said yesterday that they were "gravely concerned" by a US decision to slap tariffs on imported televisions.

The US commerce department ruled that TVs being made by four Chinese firms were being sold in America at less than fair value and announced duties between 28%-46%. The Chinese commerce ministry reacted angrily. A statement said the decision amounted to "serious discrimination" and "unfair treatment" of the firms.

The comments raised fears of further retaliatory action. A trade mission to US cotton, wheat and soya bean growers by Chinese buyers planned for next month has already been cancelled after the US last week moved to curb the import of Chinese textiles.

The US government is coming under increasing pressure from domestic manufacturers and labour unions to act on China and the issue is likely to be a crucial one in next year's presidential election.

US firms and labour unions argue that the American manufacturing base is being devastated by free trade agreements with China, where costs are lower and regulations less stringent. The Chinese currency is also pegged to the dollar, which economists argue keeps it artificially low. US TV makers and unions said that imports from China and Malaysia had soared from 210,000 units in 2000 to 2.6m last year.

One company affected by the tariffs, Sichuan Changhong Electronic, said it was surprised by the allegation of dumping. "All of Changhong's exports to the US have reasonable profit margins," it said.