Chinese manufacturers are dumping washing machines into the US market at artificially low prices, making them subject to punitive duties of up to 52 percent, the US Department of Commerce said on Friday.
In a case brought by US appliance manufacturer Whirlpool Corp a year ago, in a market that saw US$1.1 billion in imports last year, one Chinese firm was found to be dumping washing machines at up to 52.5 percent below a fair price.
The Commerce Department has ordered importers to begin paying the punitive duties immediately, but the final step will come on Jan. 23 when the International Trade Commission will rule on whether the dumping has harmed US companies, in which case the penalties on the Chinese products would be enforced permanently.
Suzhou Samsung Electronics Co Ltd (蘇州三星電子) was found to be selling at the biggest gap below fair value, while other producers had margins of 44.3 percent, and Nanjing LG-Panda Appliances Co Ltd (南京樂金熊貓電器) had the smallest gap, of 32 percent.
The latest anti-dumping case comes on the eve of China’s 15th anniversary of joining the WTO, which was supposed to mark the formal recognition of the country as a market economy.
China wants that status as it would make anti-dumping cases harder to file, but the US has indicated it is not ready to change how it handles these cases, as has Japan.
In related news, Samsung on Friday announced it would disable its Galaxy Note 7 smartphones in the US market to force remaining owners to stop using the devices, which were recalled for safety reasons.
The South Korean electronics giant, the world’s biggest smartphone vendor, said 93 percent of Note 7 handsets in the US had been returned to the company after its recall earlier this year, which came amid reports of devices exploding or catching fire.
However, to get any remaining devices off the market, Samsung said it would deliver an over-the-air update that prevents the smartphones from charging.
“To further increase participation [in the recall], a software update will be released starting on Dec. 19 that will prevent US Galaxy Note 7 devices from charging and will eliminate their ability to work as mobile devices,” Samsung said in a statement.
The company said the latest move is “in cooperation with the US Consumer Product Safety Commission and in partnership with carriers and retailers.”
However, US carrier Verizon Communications Inc said that it would not participate in the update to disable the handsets.
“We do not want to make it impossible to contact family, first responders or medical professionals in an emergency situation,” Verizon said in a statement.
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