China has revealed that the US preliminary decision alleges that China provided trade subsidies to some exporters with yuan values in violation of international regulations.
The case is linked to a U.S. investigation into China's cable exports, with the U.S. Department of Commerce imposing tariffs on products after determining that manufacturers are gaining an unfair advantage over the currency. As a result, the Chinese Ministry of Commerce called on the US authorities to stop its investigation, as well as dispute the country's preliminary decision.
According to the ministry, the action is in violation of relevant international regulations. In this regard, the US needs to reconsider all the evidence and feedback submitted by China as well as correct their decision.
Additionally, a claim submitted by the US claims that the yuan exchange rate to the dollar was valued at 5% in 2019 is incorrect and is not supported by any analysis.
Following the demand, the US has decided that cable exporters from China receive subsidies from the national currency which is considered too low, and directs American customs agents to collect cash deposits from importers of the product from China.
Last month, the US imposed similar restrictions on Vietnamese car and truck tire exports, arguing their currency was too low.
