China Power Transmission (CPT), a mechanical components manufacturing company based in Meishan, Sichuan province, was among the Chinese companies investigated over anti-dumping and countervailing duties by the U.S. Department of Commerce. The probing was done at the request of TB Wood's, a manufacturer based in the state of Pennsylvania.

The Department of Commerce made its final determination in October 2016, saying that products imported from CPT had been sold in the United States at dumping margins of 13.64 percent, and had received countervailable subsidies of 33.26 percent.

"That means at least 100 million RMB-worth of loss, as our company's exports to the U.S. sharply declined following the final determination," explained Xie Delong, vice general manager of the company, adding that the determination might change the industry's future, as CPT is an important leader.

In June 2016, CPT filed a defense to prove that it had not threatened the U.S. company. It was later proven that many of the company's products were not manufactured by TB Wood's. The probe was deemed invalid under U.S. laws.

Xie said CPT's products made up less than 1 percent of the U.S. market, and could therefore have only limited effects. It is up to American companies to price the products, and therefore no injury was done to the U.S. industry.

Zhang Meng, director of the law department of Sichuan Council For The Promotion Of International Trade, said a communication method was set up to help CPT win the lawsuit against TB Wood's. Zhang also said a pre-warning center for economic and trade friction was launched in Sichuan in May 2015, and has taken on nine anti-dumping cases and countervailing duties so far.

China has been the recipient of the largest number of anti-dumping investigations in the world. Besides the U.S., other countries such as South Korea and Brazil have also launched probes into China's chemical, air transport, footwear, iron and steel industries.