China to extend duties on US chicken imports

BEIJING - China's Ministry of Commerce (MOC) announced Friday it will continue to impose anti-subsidy duties on US white-feathered broiler chickens while a new investigation is under way.

China began to levy anti-subsidy duties on chicken imported from the United States in September 2010, claiming that the products were subsidized and unloaded onto the Chinese market at a price less than the fair value.

The five-year punitive measures will expire at the end of August, and the China Animal Agriculture Association (CAAA), which said the end of the measures will hurt domestic industry, requested the MOC extend the duties in June.

The MOC said the CAAA's request complies with laws and regulations, and it will investigate the possible effects of expiration of the duties from Aug 30, 2015 to Aug 29, 2016.

"During this period of time, anti-subsidy duties on US white-feathered broiler products will continue, with the scale and rates unchanged," said the MOC.

The decision on whether to end anti-subsidy duties will be announced after the MOC investigation.

Disputes over broiler chickens -- chickens that reach slaughter weight by about 13 weeks of age -- have been a major source of contention in the often tense trade relations between the world's two largest economies.