The U.S. tariff proposals on imported steel risk triggering a chain reaction of protectionism across the world, a spokesperson for the Chinese Ministry of Commerce said Thursday.
"The practices of the United States have opened a Pandora's box," spokesperson Gao Feng said, when asked to comment on trade remedy measures and investigations by the EU and Japan.
Excess production is a global issue and therefore needs all countries to work together, Gao said.
"The solution is not to close doors, but to open them, deepen cooperation, and make use of our respective advantages to increase our common interests," he stressed.
The spokesperson said China hopes all WTO members would pull together, be unaffected by the practices of individual members, and resolutely oppose protectionism.
INDUSTRIAL VOICE
The China Iron and Steel Association (CISA) has expressed its hope to better communicate with industrial associations and companies in the EU and other countries to maintain stability in the world steel market.
The statement came after the EU also began a probe into imported steel. The EU decision will add to market anxiety and instability, in a situation complicated by the United States stirring up trouble.
Chinese steel manufacturers have been reducing their production capacity, and the global steel market is recovering. "The measures taken by the United States and the EU could cause chaos," said Liu Zhenjiang, secretary-general of the CISA.
"We hope the EU will evaluate the impact of U.S. tariffs and take measures prudently," said Liu.
The CISA also urged the Chinese government to take measures to prevent the domestic market from being hurt by imported steel and protect the interests of local steel manufacturers.
Despite worldwide objections, the U.S. government decided to impose a 25-percent tariff on steel imports and a 10-percent tariff on aluminum, with tariffs on imports from countries including China.
"The move at the excuse of protecting the domestic steel industry goes against the rules of the World Trade Organization and disrupts international trade order," said Liu.
The U.S. move damages not only the world iron and steel industry, but also the interests of consumers, especially American consumers, he said.
The industrial group noted that the steel trade has caused most China-U.S. trade friction in the past few years. Even before the U.S. started the Section 232 investigation, dozens of anti-dumping and countervailing measures had been imposed on Chinese steel products.
CHINA'S COUNTERMEASURES
In response to the U.S. tariff proposals, the Ministry of Commerce announced on March 23 that it was considering suspending tariff concessions on 128 categories of U.S. products worth 3 billion U.S. dollars, including pork, wine and seamless steel tubes.
Public comments on the move are being solicited until March 31.
After that, the ministry will make an assessment based on public opinion and announce a formal plan, said Gao Feng.
On March 19, the U.S. International Trade Commission terminated an investigation into Chinese steel products for violation of antitrust laws. The probe was started in 2016 after U.S. Steel filed a report of three unfair acts: a conspiracy to fix prices and control output and export volumes, misappropriation and use of U.S. Steel's trade secrets, and false designation of origin or manufacturer.
"After 20 months of hard efforts, we won the case by proving all three allegations to be insubstantial," said a CISA statement at the time.
"China's steel industry will respond to U.S. challenges and make itself stronger," it said.
