In retaliation to US decision to impose sanctions against Chinese tyre imports, China said yesterday it would launch an anti-dumping investigation into American chicken and auto products.
Dumping is selling goods lower than the cost of producing them.
China's ministry of commerce said it was starting proceedings after having received complaints that US auto and chicken products were being sold in China at below-market prices due to huge subsidies it receive from the government.
However, the ministry clarified that the actions against US products are not retaliatory or a form of protectionism.
"Since the financial crisis, China's actions have proven this point," the ministry said, adding that China is willing to work with countries around the world to act together to promote the quick recovery of the world economy.
The Obama administration on Friday imposed a 35 per cent import tariff import on cheap Chinese tyres in the first year, which would decline to 30 per cent in the second and 25 per cent in the third (See: US to slap high tariffs on Chinese tyres; China calls it protectionism).