n early June before the opening of the eighth round of Sino-US strategic and economic dialogue, the Sino-US trade disputes escalating into a significant pain point. US Steel trade war against China is a comprehensive upgrade. This led to strong resentment among the Chinese side.
To curb the influx of Chinese iron and steel, the US Department of Commerce decided on the 25th announced the final ruling of anti-dumping and countervailing investigations, the corrosion-resistant steel from China
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Up to 450% of the imposed anti-dumping duties and countervailing duties to replace the rate of 256% when the preliminary ruling last December. The agency also announced on corrosion-resistant steel India, Italy, South Korea and Taiwan to impose anti-dumping duties, but the rate of China’s most important.
The Chinese Ministry of Commerce, Bureau of 26 trade remedy investigations, said,
The United States has recently been deliberately suppressed the bulk of Chinese exports to the US steel products, cold rolled and corrosion-resistant plate, ruled entirely inconsistent with the actual market situation, essentially man-made obstacles, rejection of Chinese products. Chinese government and enterprises to strong dissatisfaction with the United States of irrational behavior.
May 26, the US International Trade Commission announced its decision on Chinese exports to the US steel and alloy steel products launched 337 investigations. The Chinese Ministry of Commerce, Trade Remedy Investigation Bureau issued a document called 27,
For the United States based on unfounded allegations and application, decided to Chinese exports to the US steel and alloy steel products launched 337 investigations, the Chinese side expresses its resolute opposition and strong dissatisfaction. Recent US continuously taken for steel products trade remedy measures, which is not prudent behavior, this is an unprecedented for the Chinese iron and steel products launched 337 investigations, with the obvious trade protectionism.
Moreover, the US also announced dozens of Chinese steel companies to investigate whether the theft of trade secrets. According to Reuters, the US International Trade Commission (ITC) 26, said the complainant had US Steel (United States Steel) proposed investigation, the company’s complaint that hackers stole data production technology of a new generation of lightweight high-strength steel, so that competitors can copy China’s Baosteel quickly that the company spent 10 years developing the product. It also said that China is also a competitor to fix prices, and exports to the US product tampering origin.
ITC said in a statement, not yet make a determination of the merits of the case. According to the main US Tariff Act of Section 337, the United States Steel Corporation seeks to stop almost all imports from China’s largest iron and steel production activities in enterprises and trading companies.
The Committee of the Chinese iron and steel production enterprises and 40 sales subsidiaries as the survey, including Baosteel, Hebei Iron and Steel, Wuhan Iron and Steel, Anshan Iron and Steel and Jiangsu Shagang.
Baosteel responded that the allegations baseless, totally inconsistent with the facts, particularly with regard to allegations of misappropriation of trade secrets, Baosteel, US Steel from unwarranted speculation and subjective, it is nonsense.
With the global economic slowdown, the global steel industry presents a serious overcapacity. And China’s steel exports accounted for half of the world’s total exports last year, production reached 112 million tons. Steel price slump caused by the collapse of a large number of worldwide from Australia to plant part of the industrial center of the United Kingdom, and the United States.
Thus, China’s steel industry has become a target of public criticism. China accused the United States and Europe are heavily subsidized by the iron and steel sector to the global market a large output of steel at below the cost of production “dumping”, driving down international prices.
Between China and Europe and around the steel-related issues become increasingly acute contradictions and conflicts. In the 26th G7 summit held in Japan has just started, but did not attend because of the Chinese iron and steel issues became the focus of discussion. European Commission President Juncker said Chinese steel overcapacity affecting all countries, Europe can not “distorted market” defenseless. G7 summit communique made clear that steel overcapacity have a negative impact on the economy.
This problem has also hit China’s efforts to gain market economy status within the WTO framework. China claims that it joined the 15th anniversary of the full WTO in December this year, should not automatically granted market economy status. If China acquired the status, then this may affect the ability of the United States and other countries on China initiated anti-dumping case, because it will enable them to parity with the price can not be surrogate country.
In the middle of this month, the European Parliament to 546: overwhelmingly 28 passed a resolution refusing to recognize China’s market economy status, and refused to relax the anti-dumping ban on China, and its resolutions, the statement said the current 73 EU anti-dumping measures, the Chinese violation the 56.
Head of EU Delegation WeiShi 9 May has said China needs emergency response steel industry overcapacity and resulting market imbalances, the problems without delay, the current lack of initiatives to deal with the Chinese efforts.
Chinese Foreign Ministry subsequently responded that on May 10, steel overcapacity is a global problem, its root cause is lack of effective demand during a global recession, the solution to this problem is the fundamental way to take effective measures to make the global economy can be sustained and stable recovery.
China refused to acknowledge any wrongdoing. Ministry of Foreign Affairs also said that May 10, 2015, the EU imported a total of 32 million tons of steel, which is actually only about 1/5 from China, so the plight of the industry in Europe is now entirely to blame China is obviously illogical.
US Department of Commerce on May 17 said it would cold rolled flat steel imports from China increased to final 522% import tax. May 18, the Ministry of Finance issued a document that China will continue to implement the export tax rebates and other tax incentives, the abolition of bonded steel imports under processing trade. This means that the steel export business tax incentives although controversial, but in the future will continue to adhere to this policy.
High tax rates for the dual US and Chinese Ministry of Commerce, Bureau of 26 trade remedy investigations, said: “The Chinese side will take all necessary measures to fight for fair treatment, safeguard the interests of enterprises,” but this is described in detail.
However, the Chinese government is trying to solve the steel industry overcapacity problem. The central government said it will decrease from 100 million to 150 million tons of annual capacity. Hebei Province, China’s largest iron and steel plans to Yajian 17.26 million tons of iron, 14.22 million tons of steel production capacity. Last week, the State Department arrange 100 billion yuan of special funds to support resolve the steel and coal industry overcapacity.
China Iron and Steel Association on Tuesday released “2016 China Steel Industry Development Report” said that China does not encourage large exports of steel products, China’s steel industry is willing to cooperation and win-win way to resolve trade friction, firmly oppose trade protectionism, against the will of steel politicizing trade issues