China’s Ministry of Commerce announced Saturday that it will impose anti-dumping duties on steel pipes imported from the United States and the European Union.
According to IRNA, dumping, or market breakdown and price-breaking, is the sale or export of a commodity at a price lower than the cost, or in other words, the sale of goods abroad at a price lower than the domestic price. Discrimination in prices means business.
In other words, manufacturers and traders offer their products at low prices to gain markets. Some Persian-speaking experts have called the term “destructive competition.”
In a continuous or accidental market crash, the benefit to the consumer due to the low price may be greater than the loss that the producer sees.
The Chinese Ministry of Commerce announced in a statement on Saturday that the implementation of these tariffs will start tomorrow, Sunday, and will continue for 5 years.
High pressure steel and alloy pipes are used in power stations.
The Beijing government’s move comes amid tensions over the outbreak of the Corona virus, with China and the United States emphasizing trade agreements yesterday (Friday).
China and the United States, the main negotiators on trade issues, announced on Friday after a telephone conversation that they would continue to abide by the provisions of the “first phase of the Beijing-Washington Trade Agreement” signed on January 25, 2009.
The phone call came as China-US relations have been strained since the Corona began, with some analysts recommending that China prepare for a direct confrontation with the United States.
Under the agreement, China agreed to import $ 200 billion worth of goods from the United States in two years, $ 75 billion of which is manufactured goods, and the rest includes the purchase of agricultural items and energy products and service goods.
Of this amount, China will allocate $ 50 billion for the purchase of energy products, $ 40 billion for the purchase of agricultural products and $ 40 billion for services. These purchases will be made over a two-year period.
Officials from China and the United States said in a telephone interview that in addition to implementing the terms of the trade agreement, they were seeking to “strengthen their cooperation on macroeconomic and public health issues.”