News Room - Steel Industry

Posted on 12 Oct 2009

China opposes US antidumping probe of steel pipes

Beijing is rejecting a move by Washington to launch an investigation into whether Chinese mills are dumping steel pipes on the U.S. market or benefiting unfairly from government subsidies.

 

The probe comes as the United States and China accuse each other of protectionism, which both say will hurt efforts to end the global economic crisis.

 

"Blind accusations of dumping or subsidies in Chinese imports is lacking in factual basis, which China strongly opposes," China's Commerce Ministry said in a statement on its Web site late Saturday.

 

The statement said the problems in the American steel industry were brought on by weakened demand and should not be blamed on Chinese imports.

 

The U.S. Department of Commerce last week started investigating at the request of U.S. steel manufacturers, who say Chinese manufacturers have sold steel pipe at prices below the cost of production — a practice known as dumping — and have benefited from massive government subsidies.

 

U.S. manufacturers want tariffs placed on the Chinese imports to offset the alleged subsidies.

 

President Barack Obama recently approved higher tariffs on U.S. imports of Chinese-made tires to slow the rapid growth of imports that a labor union has blamed for the loss of thousands of American jobs. Beijing filed a World Trade Organization challenge to Washington's decision.

 

The two governments also are involved in disputes over access to each other's markets for poultry, paper, music and movies.