November 6, 2017

U.S. Commerce Department Maintains Non-Market Economy Status For China

On Thursday, Oct. 26, The U.S. Commerce Department announced that it will maintain its designation of China a non-market economy (NME).

In its 200-page report on the matter, the department said, “[A]t its core, the framework of China’s economy is set by the Chinese government and the Chinese Communist Party, which exercise control directly and indirectly over the allocation of resources through instruments such as government ownership and control of key economic actors and government directives.”

As part of the Manufacturers for Trade Enforcement coalition, the Metals Service Center Institute (MSCI) had fought for retention of NME for China. Click here to read the coalition’s statement, which was issued after the Commerce Department’s decision.

On Friday, Oct. 27, the day after the NME announcement, the department said that it had decided to impose preliminary anti-dumping duties on imports of aluminum foil from China. The duties, which were calculated based on the retained NME status, will range between 96.8 percent and 162.2 percent. As a result of the preliminary affirmative determinations, the Commerce Department will instruct U.S. Customs and Border Protection to require cash deposits based on these preliminary rates.

The department is scheduled to release its final determination in this matter on February 23, 2018.