China to protect legitimate rights of steel pipe companies

World
Europe

China’s Ministry of Commerce (MOC) said on Friday that it will take necessary steps to protect the legitimate rights of Chinese companies, after the European Union imposed tariffs on certain Chinese steel products which the bloc claims are being dumped in the market.

The European Commission announced that it will impose tariffs between 30.7 percent and 64.9 percent on some steel products coming from the Chinese mainland, with measures also applying on Taiwan, for a five-year period.

The tariffs will specifically target stainless steel tube and pipe butt-welding fittings, which an EU investigation found were being sold at dumped prices and therefore muscling out competition from European producers.

China is EU’s first destination of imported goods. Wang Hejun, head of the MOC trade remedy and investigation bureau, said that the move by the European Commission violated World Trade Organization (WTO) rules, and China was highly concerned about trade protectionism by the European Union in the iron and steel sectors.

Wang said that the European Commission disregarded in its investigation facts and materials provided by Chinese companies, and continues to use the "unfair and unreasonable" surrogate country approach, seriously affecting interests of Chinese companies.

Flags of the European Union fly outside EU's new Europa building in Brussels, Belgium, January 27, 2017. /CFP Photo

The Chinese government hopes the European Union will abide by WTO rules and cease the surrogate country approach, Wang said.

The ministry voiced serious doubts about the decision to impose these duties and accused the European Union of protectionism, warning that the move will have a damaging effect on a number of Chinese steel companies.