A prove by US department of commerce has published its initial findings that Chinese Aluminium foil producers receive subsidies in the range of 16.56 to 80.97 per cent. According to the report, the U.S. customs and broader protection agency will be asked to collect cash deposits from importers of Aluminium foil from China based on these preliminary rates.

U.S. commerce secretary Ross said, ““The United States is committed to free, fair and reciprocal trade, and will continue to validate the information provided to us that brought us to this decision……..The Trump Administration will not stand idly by as harmful trade practices from foreign nations attempt to take advantage of our essential industries, workers, and businesses.”

In 2016, Aluminium foil imports from China amounted to $389 million. Here are some details of the probe,

“Commerce calculated preliminary subsidy rates of 28.33 percent ad valorem for Dingsheng Aluminum Industries (Hong Kong) Trading Co., Ltd, 16.56 percent for Jiangsu Zhongji Lamination Materials Co., Ltd., the two companies that ultimately participated in the proceeding.

Loften Aluminum (Hong Kong) Limited refused to participate in this investigation. Manakin Industries LLC claimed to only be an importer; however, our analysis also revealed that Manakin Industries LLC and Suzhou Manakin Aluminum Processing Technology Co., Ltd. (Suzhou Manakin) worked jointly to export Chinese aluminum foil to the United States. In addition, the Department requested necessary information from Suzhou Manakin regarding its Chinese suppliers, but this information was not provided. All three of these companies’ preliminary subsidy rates were thus determined entirely on the basis of adverse facts available due to their failure to provide necessary information requested by the Department.”

From January 20 through August 8, Commerce has initiated 64 anti-dumping and countervailing duty investigations – a 40 percent increase from the previous year. For the same time period in 2016, Commerce had initiated 40 anti-dumping and countervailing duty investigations.

China challenged these claims made by the United States by calling them groundless and urged Washington to act prudently in order to avoid damaging economic relations between the two countries.