Unfair and inappropriate US penalty criticized
Source: Xinhua |
March 20, 2013, Wednesday
|
Print Edition
Print Edition
A UNITED States court ruling to fine Chinese vitamin C producers for alleged price fixing is both unfair and inappropriate, the Ministry of Commerce said yesterday.
The Brooklyn Federal Court ruled on Thursday that North China Pharmaceutical Group Corp and its affiliate Hebei Welcome Pharmaceutical Co must pay US$162 million in fines for colluding to raise prices for vitamin C exports to the US.
Ministry spokesman Shen Danyang told a press conference that companies have been operating in line with domestic laws and regulations, and are implementing compulsory requirements imposed by the government.
Vitamin C is an essential nutrient for humans and certain other animal species, making it an important ingredient for food, drugs, and feedstuff.
Since the turn of the century, China's vitamin C production grew to become a major supplier in the global market.
However, excessive production capacity became a chronic problem for the sector, leading the government to take measures to address the issue.
In March 2011, the National Development and Reform Commission and the Ministry of Industry and Information Technology jointly released a circular which aimed to curb the sector's overcapacity and achieve healthy development.
The circular set a maximum vitamin C output volume of 100,000 tons for 2011 and prohibited local authorities from approving the construction of new production capacity.
The US ruling marked the first time a Chinese pharmaceutical company has been fined in a US antitrust court case.
Shen said the ministry briefed the US court in the form of amicus curiae, or "friend of the court," on three occasions to clarify that the Chinese companies involved had acted according to industrial policies.
Such briefs are filed by parties not involved in a case but who believe the court ruling may affect their interests.
"It is totally inappropriate for the US court to impose a massive penalty based on legitimate activities of Chinese companies," Shen said.
The US ruling is in violation of both the principle of international comity and the spirit of the rule of law, Shen said.
The Brooklyn Federal Court ruled on Thursday that North China Pharmaceutical Group Corp and its affiliate Hebei Welcome Pharmaceutical Co must pay US$162 million in fines for colluding to raise prices for vitamin C exports to the US.
Ministry spokesman Shen Danyang told a press conference that companies have been operating in line with domestic laws and regulations, and are implementing compulsory requirements imposed by the government.
Vitamin C is an essential nutrient for humans and certain other animal species, making it an important ingredient for food, drugs, and feedstuff.
Since the turn of the century, China's vitamin C production grew to become a major supplier in the global market.
However, excessive production capacity became a chronic problem for the sector, leading the government to take measures to address the issue.
In March 2011, the National Development and Reform Commission and the Ministry of Industry and Information Technology jointly released a circular which aimed to curb the sector's overcapacity and achieve healthy development.
The circular set a maximum vitamin C output volume of 100,000 tons for 2011 and prohibited local authorities from approving the construction of new production capacity.
The US ruling marked the first time a Chinese pharmaceutical company has been fined in a US antitrust court case.
Shen said the ministry briefed the US court in the form of amicus curiae, or "friend of the court," on three occasions to clarify that the Chinese companies involved had acted according to industrial policies.
Such briefs are filed by parties not involved in a case but who believe the court ruling may affect their interests.
"It is totally inappropriate for the US court to impose a massive penalty based on legitimate activities of Chinese companies," Shen said.
The US ruling is in violation of both the principle of international comity and the spirit of the rule of law, Shen said.
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