Chinese Steel Giant Wins US Anti-dumping Charges

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Last updated at: (Beijing Time) Monday, July 01, 2002

Chinese Steel Giant Wins US Anti-dumping Charges

June 17, the US International Trade Commission at long last ruled the Maanshan Iron&Steel Company Limited (the "Magang") dumping no steel on the US market and a continuing 6% tariff rate on the latter's steel. Thus far, a year's time has gone by since Magang took the cudgels countering the anti-dumping charges of the US in leading up to its final victory as a defendant and a steel exporter from China.

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Magang gives active response

May 23, 2001, four US structural-type steel corporations including NUCOR-YAMATOSTEELCO sent an investigation application to the US Department of Commerce asking for a probe into structural steel imports from eight countries including China, Russia, Germany and Italy.

Magang was not excepted but put on file for 'dumping' and was ruled on a 152% of anti-dumping. When various mediatory efforts were just tried out by Magang, the US Ministry of Commerce in December 2001 simply targeted its anti-dumping at it and imposed a 159% raise of tariffs on its steel from 0%.

In face of the US charges, Magang's managers held that the way acting on WTO rules and by making use of legitimate channels to protect Magang's lawful interests and in due course to accumulate experience for handling international trade disputes makes the only right choice of the company.

Magang wins complete victory

Through as long as a year's investigation and fact-finding, the US Ministry of Commerce on May 5, 2002 adjudicated on the problem of structural steel from the eight countries including China, of which tariffs on Magang's steel were readjusted back to 0% from 159%. In contrast, an adjusted tariff of 0, 33%-230% and 6% were respectively set on those of seven others. June 17, the US International Trade Commission ruled on Magang's steel as being 'brought no harm'.

This is because, as the US side declared, Magang's steel has been at a reasonable price as an export item, marked oriented and with an appropriate proportionate price ratio asked according to market changes and demands, hence helping it win complete victory by clearing its H-steel from US's anti-dumping charges.

A long way to go developing steel exports

Since after winning its anti-dumping lawsuit Magang may be said to have been in a position to develop its H-steel as a major export item unimpeded in the US market. But much still remains to be desired as a whole in the country for a severe export situation still faces many other Chinese exporters in the trade and about this we must be clear-headed.

Since the early 1970s of the 20th century, due to a general use of new materials, steel industry has been regarded as a "dismal industrial sector" with a falling market in the developed European and American countries.

But in the developing countries including China, steel industry steel just rose as a key and supporting industrial sector representative of their economy and this had even been used as an major indicator measuring the development level of their industries and yardstick marking their comprehensive national strength.

The last few years, the US has been seen no more its past ten years of economic growth but a period of readjustment. The world economy has been at a time of recession and an oversupply of steel has seen all over the world.

By statistics of the International Steel &Iron Institute, world steel output in 2001 was placed at 1.068 billion tons against 722 million tons of market demand and an equipment utility of 77%. Of this, the UN, Asian and North American countries took a surplus of 40%, 37% and 23% respectively.

This is especially so after the 'September 11' terrorist attacks in the US: disasters may be said to have piled up one after another to steel manufacturers in the European and American countries. There a large number of Steel works had gone bankrupt, with increasing demand for trade protectionism voiced and numerous anti-dumping cases created, placing China's steel works export steel abroad in a more difficult situation of 'anti-dumping'.

This poses the top task to Chinese steel makers of training a large number of personnel well versed with international trade rules, WTO rules and related international trade laws to build up their competitive edge with update technology. They must seize the day and seize the hour in order to win in the present-day world.

By People's Daily Online

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