China scorns EU’s steel duties
CHINA has condemned the European Commission for imposing new anti-dumping duties on its steel products, accusing the EU’s executive of making China an industrial scapegoat.
The 28-nation bloc said on Friday that it would levy duties of up to 35.9 percent on Chinese hotrolled flat steel in an attempt to create a level playing field with China as it broadens its campaign to protect Europe’s steel manufacturers.
The EU alleged China, which makes more than half the world’s steel, has flooded global markets in violation of international trade agreements.
According to the European Commission, Chinese producers benefit from preferential lending and tax rebates that allow exports to the EU at artificially low prices.
But China said the bloc’s action stemmed from a misunderstanding of China’s financial loan system and trade trends.
“The European Commission ignores the fact that China’s steel exports to Europe clearly de- clined in 2016, using China’s steel overcapacity as an excuse to claim that China’s hot-rolled flat steel products threaten to damage industry in the EU when that is mere speculation with little bearing on reality,” Chinese Commerce Ministry official Wang Hejun said in a statement on Friday.
“China strongly questions the legitimacy and legality of the European Commission’s ruling.”
The EU has had a series of trade disputes with China, its second-largest trading partner, but is also seeking to resolve the standoff over steel with Beijing through the OECD, the Paris-based group of developed economies.
In January, the Commission imposed antidumping duties on China’s stainless steel tube and pipe butt-welding fittings.
Like hot-rolled flat steel, the products are commonly used in shipbuilding and construction.
Wang noted that China has not only refrained from subsidising steel exports, but also adopted several measures to control them.