Commerce Department Sanctions China

From the Department of Commerce:

Washington - The U.S. Department of Commerce today announced its preliminary decision to apply U.S. anti-subsidy law to imports from China. This is the first time countervailing duties will be imposed on imports from a non-market economy. The decision alters a 23-year old bipartisan policy of not applying the countervailing duty (CVD) law to non-market economy countries, and reflects China’s economic development.

Today’s preliminary decision determined that Chinese producers and exporters of coated free sheet paper received countervailable subsidies ranging from 10.90 to 20.35 percent.

"This Administration has aggressively enforced our anti-dumping laws to combat unfair Chinese trade." said Commerce Secretary Carlos M. Gutierrez. "China’s economy has developed to the point that we can add another trade remedy tool, such as the countervailing duty law. The China of today is not the China of years ago. Just as China has evolved, so has the range of our tools to make sure Americans are treated fairly. By acting on the petition filed last October, the United States today is demonstrating its continued commitment to leveling the playing field for American manufacturers, workers and farmers."

Apparently, the Commerce Department thinks it is bad when foreigners sell products here below the cost of American producers. Damn those Chinese selling things here on the cheap. Whatever will we do? Apparently the answer is to raise the price of these goods for Americans. That'll teach those foreigners.