World

China launches US trade probe

13:39 pm on 14 September 2009

China is launching an investigation into imports of cars and poultry from the United States.

The move comes just two days after Washington approved higher import duties on Chinese-made tyres.

The White House announced duties of an additional 35% on the tyres for one year, followed by tariffs of 30% and 25% in the following two years

In a statement, China's government described the move as "a serious act of trade protectionism" by the Obama administration.

The BBC reports the case is the latest in a series of recent trade disputes between China and the US.

Washington has long accused China of trade protectionism, the US is also unhappy at the high volume of Chinese exports to America, accusing Beijing of deliberately keeping the yuan undervalued to make its exports artificially cheap.

The US trade deficit with China totalled $US103 billion in the first half of 2009, down 13% from the same period last year.