A 337 survey of Chinese steel products launched by the United States
Local time on May 26th, the United States International Trade Commission (USITC) announced the launch of the "337 survey of Chinese imports of carbon steel and alloy steel products" (editor's note: 337 according to the USITC survey refers to the "1930 year tax law" section 337th and related amendments to the survey, is prohibited all acts of unfair competition or export to the United States the product in any unfair trade practices), the survey involved a total of Baosteel, Shougang Group, Wuhan Iron and steel enterprises and Chinese branch of the United States a total of 40 companies. According to the investigation procedure, the United States once adjudication that the enterprise has irregularities, related products or is permanently prohibited into the United States market.
This is the first time in the United States to launch a 337 survey of Chinese steel products. In response, the head of the Ministry of Commerce relief and trade investigation bureau said in May 27th that the action of the US side "has obvious trade protectionism" and is not conducive to fundamentally solve the predicament of the US steel industry. It will only interfere with the normal trade order artificially.
Chinese iron and steel enterprises are facing the pressure of production capacity in the domestic market, and their exports are triggering a sustained rebound in Europe and the United States. The steel trade war that has been launched in 2015 is upgrading again.
Steel enterprises appealed to the Chinese government
Take counter measures according to the WTO rules
As a plaintiff, the US Steel Corp (U.S. Steel Corporation) accused the Chinese company of unfair competition of some carbon steel and alloy steel products in the export to the US, in the US and in the US. Accusation includes three contents: first, control price, output and export volume; second, embezzlement and use of Steel Corp's trade secrets; third, the origin or manufacturer's identification is false.
In June 2nd, the United States River Steel Group survey published a statement on its official website, said "great indignation and resolutely opposed", River steel will actively respond to the defense to safeguard their legitimate rights and interests, fair treatment, also called on the government China according to the rules of WTO, according to the United States in violation of WTO rules and practices, and resolutely take counter measures to maintain the legitimate rights and interests of China iron and steel enterprises and the normal trade order.
In early April 29th, Baosteel Group had issued a statement that the three charges "Steel Corp no basis", especially for the theft of commercial secrets charge, Baosteel refers to its source in the United States Steel Corp groundless speculation and subjective, it is groundless statement". This time, Baosteel Group expressed "regret" for the final decision of the US International Trade Commission, but also called on the Chinese government to take the WTO rules and take the necessary measures to win fair treatment for Chinese steel enterprises.
It is worth mentioning that, according to the relevant contents of the accusation, the China Iron and Steel Industry Association as an important organization of the industry is also recognized by the Steel Corp as a "monopoly organization".
In response, the head of China Iron and Steel Industry Association expressed strong dissatisfaction with the 337 investigation launched by the US International Trade Commission on the basis of Steel Corp's application without foundation. The 337 survey is the United States on investigation Chinese steel products dual (anti-dumping and countervailing investigation) upgrade is the extreme measures taken to curb the Chinese steel industry, but also serious damage to the normal order of the world iron and steel trade.
China iron and Steel Industry Association, said that in recent years, the United States in the field of iron and steel Chinese steel products have initiated 46 trade remedy investigations, has been taking a very unfair policy on China steel products, artificially high tax rates, resulting in steel exports to the United States in 2015 Chinese only about 2000000 tons. On the basis of "double counter" measures on Chinese steel products, the United States has launched a 337 survey, which belongs to the remedies and the abuse of trade restrictions.
China's steel industry has been for 8 consecutive years
Encounter the most trade frictions
In recent years, the export of iron and steel products in China has been increasing, and the steel producers in many countries and regions have begun to seek the protection of government.
According to the data provided by Lange Iron and Steel Information Research Center, in 2014, 14 countries and regions launched 21 Trade Relief surveys on China's steel products, including 5 safeguard measures, 1 countervailing measures, 1 anti circumvention, 12 anti-dumping cases, and two anti dumping cases.
In 2015, the 98 foreign trade relief investigations launched by foreign countries involved 13 industries, such as steel and its products, chemical industry, mechanical and electrical, building materials, transportation tools, metallurgy and so on. Among them, the steel and its products industry took the first place in 46, accounting for nearly half. The data of the Ministry of Commerce showed that in 2015, there were 37 cases of trade friction in China's steel, and the amount involved in the case was $4 billion 700 million. This is China's steel for eighth consecutive years has become the most trade frictions in the industry.
This year, there were a number of countries and regions of the government or industry organizations to put pressure on the Chinese steel trade: in March 4th, the U.S. Department of Commerce launched the first time this year, anti subsidy and anti-dumping investigation on imports from Chinese stainless steel plate and strip; in April 29th, the Commission issued a notice to decide in advance to take control measures on imports of steel products, demand show file import monitoring into the EU in the free flow of iron and steel products from third countries; in May 17th, the U.S. Department of Commerce announced that it would impose a 522% import tax on cold rolled steel from China; in addition, the European steel union iron and Steel Association to G7 leaders sent a letter to the requirements of Chinese steel resistance.
Since China's accession to WTO, China's steel products have been subjected to many anti-dumping investigations. The alternative country system is a booster for us to decide the dumping extent of China's steel industry. Lange Steel Research Center Director Wang Guoqing on the "China Economic Weekly" reporter said, the so-called surrogate country system is a measure of non market economy commodity value, not the actual production cost in the accounting, but choose a market economy "surrogate country" similar goods pricing. The anti-dumping ruling of iron and steel in our country all over the years is approved by the market price of other countries as the alternative price.
Wang Guoqing introduction, Lange Steel Research Center monitoring data show that since Chinese joined WTO, U.S. steel products for the China has launched more than 20 double reverse survey, and more than 10 anti-dumping investigations, and the United States in the random selection of China's iron and steel products anti-dumping investigation to replace the country, China's steel exports to impose high anti-dumping duties, serious damage to the iron and steel industry of our country foreign trade interests.
The responsibility of overcapacity can not be pushed to China
At present, the iron and steel industry in all countries is faced with problems such as difficulties in operation, overcapacity and so on. As the plaintiff's Steel Corp, the company's sales revenue in 2015 was $11 billion 574 million, a significant drop of 33.9% and a net profit of $1 billion 508 million.
In just the end of the eighth round of Sino US strategic and economic dialogue, U.S. Treasury Secretary Jacob Lu said, China must develop policies that significantly reduce overcapacity affected by a series of industrial production, especially steel and aluminum, the important operation and stability of the international market to.
"One of the most important issues in the Sino US strategic economic dialogue is overcapacity, because excess capacity is not only a challenge facing China, but also a global challenge." Chase Bank Director Morgan general manager, Asia Pacific vice president Li Jing on the "China Economic Weekly" reporter said, "iron and steel industry is a national industry, it is a global industry, iron and steel in the world because of transportation, if a country has steel overcapacity, the excess steel capacity will be output to in other countries, will also affect the global steel market. I think China has such a determination to eliminate excess capacity. "
As a matter of fact, due to the recent trade protection measures for various kinds of steel products in China, such as hot-rolled coil, medium plate, rebar and so on, all kinds of steel products are difficult to export. Data show that as early as 2006, the United States was the second largest steel export market in China, and China exported 5 million 400 thousand tons of steel products to the United States, accounting for 12.6% of the total steel exports in China. In 2015, China exported 2 million 420 thousand tons of steel to the United States, with a total amount of $2 billion 849 million. According to the US statistics, in 2015, China's export related products to the United States were only 66 thousand tons, involving an amount of 70 million 260 thousand dollars, accounting for 6% and 8% of the total import volume and total value of the product, respectively.
At present, the global steel industry is in a doldrums. Facing the market competition of China's high-quality and inexpensive steel products, the advantages of the European and American steel enterprises are no longer. Under such circumstances, the European and American countries and regions are keen to use trade barriers to protect their steel industry. Wang Guoqing said, "but from the perspective of globalization, overcapacity of iron and steel is a global problem. All countries in the world should face up to overcapacity rather than simply shirk responsibility to China."
