China will lodge an appeal after studying closely the World Trade Organization's ruling backing the United States' imposition of extra safeguard duties on Chinese tires, as it seeks to defend the legal rights of the domestic tire industry, China's Ministry of Commerce said yesterday.

"We are looking closely to possible negative influences and will appeal at an appropriate time to defend the legal rights of Chinese tire makers," the ministry said in a statement one day after the WTO dispute panel ruled in favor of the US action.

In September 2009 amid the global financial crisis, the US announced that it would impose the punitive duties on US$1.8 billion worth of tire exports from China for three years.

The Chinese government has been reiterating that such tariffs broke WTO rules and marked a serious case of trade protectionism. China lodged a complaint with the WTO dispute panel against the tire duties three days after the Obama administration announced them.

Yesterday's statement said again that the tire tariffs are a form of trade protectionism the US is using in response to its domestic political pressure, and neither country stands to benefit from them.

The tariffs also increased the financial burden on American consumers, the statement continued, pointing out that the average tire price in the US ballooned more than 10 percent after the introduction of the duties.

The US Bureau of Labor Statistics said employment in the American tire industry fell 10 percent in the first five months of 2010 from a year ago. The tire distribution sector also saw fewer jobs available, and some small-sized tire retailers have shut.