(Yicai Global) Feb. 6 -- China's commerce ministry said it will take action to protect the country's companies and urged the US government to comply with World Trade Organization rules after its decisions on anti-dumping and countervailing duty investigations into Chinese stainless steel products.
China is disappointed with America's decision to continuously impose high tax rates on Chinese steel, and questions the fairness of the government's investigations, said Wang Hejun, head of the ministry's Department of Trade Remedy and Investigation.
During the anti-dumping investigations, the US refused to offer different tax treatments to the companies because they were state-owned enterprises, even though they provided ample evidence, he added. It constituted a violation of precedent set in other cases by the WTO's Dispute Settlement Body, Wang said.
During the countervailing probe, the investigator set high tariffs on raw material subsidies and export credits, despite active cooperation from the Chinese government and firms, he added.
Difficulties facing the steel industry have their roots in weakening demand and the global economy's slow recovery. An effective solution requires collaboration and joint efforts across all nations, Wang said. Trade protectionism will damage export businesses in other countries and harm American consumers and downstream firms, he added.
The US commerce department issued its final decision on the investigations last week, fixing anti-dumping and countervailing duty rates for Chinese steel sheets and strips at 63.86 to 76.64 percent and 75.6 to 190.71 percent respectively.