U.S. turns down currency probes in two China cases

WASHINGTON, Aug 31 (BestGrowthStock) – The U.S. Commerce Department
said on Tuesday it did not have sufficient legal grounds to
investigate if China’s currency practices effectively subsidize
its exports in separate trade cases brought by U.S. aluminum
and paper producers.

“In these two cases, the Department has determined not to
investigate whether the alleged undervaluation of China’s
currency, the RMB or yuan, is a countervailable subsidy,”
deputy assistant secretary for import administration Ronald K.
Lorentzen said in a statement.

That is “because the allegations made by domestic producers
do not meet the statutory standard for initiating an
investigation under the requirement that benefits provided
under China’s unified foreign exchange regime be specific to
the enterprise or industries being investigated,” he said.

However, the department did announce it has set preliminary
countervailing duties ranging from 6.18 to 137.65 percent on
aluminum extrusions from China to offset other subsidies
alleged in the case. The United States imported more than $500
million of the goods from China last year.

(Reporting by Doug Palmer; Editing by Jackie Frank)

U.S. turns down currency probes in two China cases