Canadian Manufacturing

China calls on Washington to end ‘unfair’ steel anti-dumping duties

The latest U.S. duties covering cold-rolled steel from China include 266 per cent for anti-dumping and 256 per cent to offset improper subsidies


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ussteel2_091110BEIJING—China has criticized U.S. anti-dumping penalties imposed on Chinese steel amid mounting complaints Beijing is exporting at improperly low prices to clear a backlog at home.

The Commerce Ministry complained Wednesday that the duties of 522 per cent announced on cold-rolled steel used in automobiles and other manufacturing were 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, aluminum 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 U.S. duties include 266 per cent for anti-dumping and 256 per cent to offset what investigators concluded were improper subsidies.

The Commerce Ministry complained regulators engaged in “unfair practices” and improperly hampered the ability of Chinese companies to defend themselves but gave no details.

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 Corp., filed a separate complaint last month accusing the biggest Chinese steel producers of conspiring to fix prices, stealing trade secrets and skirting duties on imports in the U.S. with false labeling.

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

In Britain, 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.


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