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China finally responded to the United States two days after the latter imposed tax on aluminum foil imports from the Asian nation. The preliminary decision was publicized on Tuesday.

China’s Ministry of Commerce posted a reply on its Wechat account on Thursday. The department’s head, Wang Hejun, is responsible for the message.

In the statement, China asked the United States to act “prudently” to keep the economic relations between the countries in good shape. It was also mentioned that there is no valid reason to accuse Chinese aluminum companies of receiving subsidies from the government. 

The Wechat post also revealed that foil producers in China are getting ready for a legal battle with the United States Commerce Department because of what happened. China’s government is also worried as the U.S. makes drastic moves like this one to save its own aluminum foil industry. 

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The Aluminum Association Favors Decision

The United States’ preliminary decision to put tax on aluminum foil products coming from China was praised by the president and chief executive officer of The Aluminum Association, Heidi Brock. She believes it is going to provide a “level playing field” when it comes to aluminum production in the country.

Brock added that aluminum foil makers in the United States are among the “most competitive producers” in the world. However, it is impossible to match factories from China which she said are being supported by the Chinese government.

The antidumping duties that will be placed on aluminum foil imports from China range from 16.56 percent to 80.97 percent. This is to counter the earnings Chinese aluminum foil companies are allegedly getting from subsidies.

 

U.S. Wants Fairness in International Trades

United States Department of Commerce Secretary Wilbur L. Ross, Jr. emphasized that the preliminary decision is to have fairness when it comes to trading. He added that the Trump Administration will not allow trades that are disadvantageous for them.

Improving the United States’ international trade situation was one of President Donald Trump’s promises during his campaign. Now, it appears that his people are focused on fulfilling that.

Unfortunately, China is becoming one of the main targets of the campaign. Aside from its aluminum foil, the United States is monitoring its banks and investigating its steel imports.  

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