The U.S. Commerce Department on Thursday set preliminary anti-dumping duties on imports of Chinese-made oil pipes, the biggest U.S. trade action against China.
The department said it "preliminarily determined that Chinese producers/exporters have sold OCTG (oil country tubular goods) in the United States at prices ranging from zero to 99.14 percent less than normal value."
As a result of this preliminary determination, a 36.53-percent levy will be imposed on OCTG from 37 Chinese companies, while some other Chinese companies will receive a preliminary dumping rate of 99.14 percent.
They are in addition to the preliminary extra duties of 10.69 percent to 30.69 percent the Commerce Department announced in September for Chinese oil pipes.
China strongly opposed the U.S. decision, calling it a protectionist move.
"China expressed strong dissatisfaction and is resolutely opposed to this," said China's Ministry of Commerce (MOC) spokesman Yao Jian in a statement in September.
"This does not comply with WTO agreements on subsidies. The United States used an incorrect method to define and calculate the subsidies, which has resulted in an artificially high subsidy rate, hurting Chinese firms' interests," said Yao.
From 2006 to 2008, imports of OCTG from China increased 203 percent by value and amounted to an estimated 2.6 billion dollars in 2008, according to the U.S. Commerce Department.
The department said that it would make its final determination of anti-dumping and countervailing duties next year.
With the Commerce Department's determination, the U.S. International Trade Commission (ITC) will make an affirmative final decision that imports of wire decking from China materially injure, or threaten material injury to, the domestic industry.
The Commerce Department will issue an anti-dumping duty order or a countervailing duty one based on the ITC's decision.