Business

China duties to hit US chicken imports

Chickens
Image caption Importing chicken wings and feet into China is big business for several US companies

China's government says it will impose import duties on US chicken products it says are being unfairly dumped on the Chinese market.

From Monday, duties of up to 105.4% will be imposed on US chicken imports for the next five years, the China's ministry of commerce said in statement.

It said an investigation had concluded that US imports were hurting the domestic chicken industry.

The move is the latest in a growing trade dispute between China and the US.

On Friday a US Congress committee approved a bill allowing tariffs to be imposed on imports from currency manipulating countries.

The bill is aimed at China, which is accused of keeping the yuan artificially low to help its exporters.

In its statement the ministry of commerce defended its decision to impose the latest tariffs, saying there was a "causal relationship" between the "US dumping of broiler products and the losses suffered by domestic business".

The tariffs are likely to have a significant impact on US chicken exporters, who rely on sales of chicken feet and wings to China.

Some US companies will pay lower tariffs because they co-operated with China's investigation into the industry, the commerce department said.

These include Tyson Foods, Keystone Foods and Pilgrim's Pride Corporation.

But these tariffs will still be higher than the preliminary tariff of 43.1% announced by the Chinese government in February.

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