China Wednesday responded strongly to the US decision to impose
tariffs of up to 30 percent on steel imports, threatening to
complain to the World Trade Organization (WTO).
The Ministry of
Foreign Trade and Economic Cooperation (MOFTEC) Wednesday said
in a statement that the US decision "flouts WTO rules" and China
retains the right to complain to the world trade club.
China's response followed on the heels of strong opposition against
the US decision from the European Union (EU), Japan and South
Korea, which said it would file an immediate complaint with the
WTO.
The Bush administration on Tuesday slapped tariffs ranging from 8
to 30 percent on steel imports from a slew of nations and regions,
including Brazil, South Korea, Japan, Russia, Germany, Turkey,
China, France, Australia and the Netherlands, to buoy its
floundering domestic steel industry.
"China's small steel exports to the US are not sufficient to damage
or threaten to harm US steel firms," the MOFTEC said.
The US decision would seriously affect Chinese steel firms' normal
exports to the United States and cause them to incur undue losses,
it said.
US
Trade Representative Robert Zoellick said China will be one of the
most affected countries as well as Japan, the EU and South
Korea.
According to the State Economic and Trade Commission (SETC), China
exported more than 6 million tons of steel last year, one-tenth of
which were to the US market.
The MOFTEC reaffirmed it would continue to actively negotiate with
the United States on the issue.
A
spokesperson from the China Iron and Steel Association told China
Daily that the organization, which consists of major Chinese steel
makers, "is keeping a close tab on developments over the issue and
is studying countermeasures."
Jiang Yuan, an official from the SETC said Wednesday that the US
steel import restrictions would trigger "very negative chain
reactions" in China's steel market.
"Steel makers from the EU, Japan and South Korea are likely to more
strongly target China, one of the world's biggest steel markets,
bringing much pressure onto Chinese firms," Jiang said.
Chinese firms have already suffered from a glut of steel on the
domestic market.
Jiang said China's exports to the EU, Southeast Asia and South
America would be squeezed amid increasing competition in these
markets as a result of the US restrictions.
The nations affected by the US restrictions would perhaps protect
their own markets, thus adding difficulties on China's steel
exports, she said.
(China Daily March 7,
2002)