News World News

Wednesday 24 January 2018

China criticises US anti-dumping measures on its steel

China has been criticised for flooding the market with cheap steel
China has been criticised for flooding the market with cheap steel

China has criticised US anti-dumping penalties imposed on its steel amid mounting complaints Beijing is exporting at improperly low prices to clear a backlog.

The Chinese Commerce Ministry complained that the duties of 522% announced on cold-rolled steel used in cars and other manufacturing are excessive and called on Washington to rescind them.

Beijing faces mounting criticism from the United States and Europe over a flood of low-cost steel that Western governments complain hurts their producers and threatens thousands of jobs.

The Chinese government is trying to shrink bloated industries including steel, coal, cement, aluminium and solar panel manufacturing in which supplies exceed demand. That has led to price-cutting wars that are driving producers into bankruptcy.

Chinese government plans call for stepping up exports and shifting some operations abroad. The cabinet approved measures in April to support steel exports with tax rebates and bank loans.

The latest US duties include 266% for anti-dumping and 256% to offset what investigators concluded were improper subsidies.

The Commerce Ministry complained that regulators engaged in "unfair practices" and improperly hampered the ability of Chinese companies to defend themselves.

Washington was responding to a 2015 complaint by five steel producers that said they have been forced to lay off thousands of employees due to unfair foreign competition.

One of the producers, United States Steel, filed a separate complaint last month accusing the biggest Chinese steel producers of conspiring to fix prices and stealing trade secrets.

The European Union launched its own investigation of Chinese steel exports last week following protests by steelworkers.

Tata Steel cited low-cost Chinese competition when it announced plans last month to sell money-losing operations that employ 20,000 people.

China pushed back against its trading partners in April, announcing anti-dumping duties on steel from the European Union, Japan and South Korea.

Press Association

Promoted Links

Today's news headlines, directly to your inbox every morning.

Promoted Links

Editors Choice

Also in World News