China proceeds with anti-dumping probe into car imports from U.S.

According to media reports, the Chinese government has officially notified the Obama administration of the anti-dumping investigation it is conducting into motor vehicles imported from the United States.

In a recent article, the business publication Caijing quoted the minister of commerce Chen Demin as saying the government has asked America to assist in the probe.

A report by the news agency Reuters quoted a U.S. industry official as saying China has told the United States it is launching a trade investigation, and this could lead to new import duties on autos and sports utility vehicles made by Chrysler, Ford and General Motors.

The move is widely seen as a retaliatory measure, taken by the Chinese government in response to new duties on Chinese tires authorized by President Obama on 11 September.

Since September 26, China-made passenger vehicle and light truck tires imported into the U.S. have been subjected to an additional 35 percent import duty for the duration of a year. The duty will be lowered to 30 percent in its second year and 25 percent in its third year.

Quoted by Reuters, a U.S. official said the big three American carmakers now export about 9,000 vehicles to China each year.