HONG KONG, Nov. 7, 2016 /PRNewswire/ -- China Zhongwang Holdings Limited ("the Company", HKEX: 1333) today responded to the announcement by the U.S. Department of Commerce ("DOC") concerning the preliminary determination of the anti-circumvention inquiry covering 5050-grade aluminum alloy.
"We respect the preliminary determination of the U.S. Department of Commerce that import of 5050 alloy extrusions from China is considered circumvention and take seriously compliance with U.S. trade laws. Participation in the DOC inquiry conducted about a year ago is voluntary, and among the reasons we chose not to participate include that China Zhongwang ceased production of those products close to two years ago, in early 2015, and we have no plans to produce or sell such products in the future. We exported an insignificant amount of 5050 extrusions in response to customer requests between 2013 and early 2015, constituting less than 0.1% of our total sales over that period. The determination therefore has no impact on our sales and operations," said Lu Changqing, President of China Zhongwang.
China Zhongwang also noted that the language of the antidumping and countervailing duty Orders expressly excluded extruded products made of alloy in the Aluminum Association 5000 series and containing more that 1% magnesium, which was the subject of the inquiry. The preliminary determination now extends to cover 5050 series.
Mr. Lu added, "In addition to the U.S. market, China Zhongwang exports to over a dozen countries and regions around the world. Contrary to certain media reports that inaccurately described China Zhongwang's corporate nature as well as the background of Mr. Liu Zhongtian, its founder and majority owner, Mr. Liu is not a member of any political organization, and China Zhongwang is an independent, non-state owned and market-driven company. We always strive for compliance with relevant trade regulations in markets we operate, and support fair business competition."
The Company has retained Steptoe & Johnson LLP as trade counsel to represent it in the U.S.
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SOURCE China Zhongwang Holdings Limited