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China has accused the European Union (EU) of hurting competition by imposing anti-dumping duties on Chinese steel, ratcheting up growing global tensions over a flood of low-cost Chinese exports.
The EU duties announced Ocotber 7 are among the latest measures taken by Europe, the United States and other trading partners in response to, what they say are, improperly low prices for Chinese steel. They complain the flood of Chinese exports is depressing global prices, hurting foreign competitors and wiping out jobs.
A statement from the Commerce Ministry said Chinese steel exports could not affect prices because they account for just 5 percent of the European market.
"Rashly taking such wrong steps as trade protection and restricting fair market competition is not the right direction for development of the European Union steel industry," said the statement that was published on Ocotber 8.
The latest EU duties apply to hot-rolled steel, which is used in construction, ship-building and pipelines construction and in other construction and manufacturing practices invloving heavy equipment. The charges range from 65.1 per cent to 73.7 per cent for heavy plates and 13.2 per cent to 22.6 per cent for hot-rolled steel.
Steel is one of the industries in China that has witnessed a rapid growth in production over the past decade until supply exceeded demand, depressing prices and leaving a backlog of unsold goods.
Beijing has ordered state banks to lend to support for steel exports, which has fueled complaints reagarding the below-market-level selling prices that violate trade commitments.
The United States earlier imposed anti-dumping duties of up to 522 per cent on Chinese steel imports to offset, what regulators said are, improper subsidies to producers.
