(Yicai Global) Feb. 9 -- China’s commerce ministry has expressed its extreme dissatisfaction at an EU ruling to introduce anti-dumping duties on stainless steel imports from the country, saying that the bloc adopted a discriminatory “surrogate country” approach during its deliberation.
The EU replaced the price and cost data of Chinese firms with those from Brazilian companies during the investigation, said Wang Hejun, director of trade remedy and investigation at the commerce ministry, calling on the trade bloc to correctly fulfill its obligations according to World Trade Organization rules.
The "surrogate country approach" involves WTO members comparing Chinese prices and costs with those from a third country, which often results in the levying of higher tariffs against China in anti-dumping probes.
The European Commission’s decision means that China’s corrosion-resistant steel products will be subject to an anti-dumping duty ranging from 17.2 percent to 27.9 percent over the next five years.
The ruling could directly impact Chinese firms such as HBIS Group Co., Shougang Group Co., and Jiangsu Shagang Group Co. The probe found that Chinese exports make up almost 20 percent of the EU’s stainless-steel product market, which is valued at USD5.641 billion.
The root cause of the depressed global steel industry and excessive production capacity lies in the reduced demands following the downturn of the world economy following the international financial crisis, Wang said. Only the efforts of countries can put the world economy back on the road toward stable development, he added.
China is more than willing to increase exchanges and communication with the EU and solve the problems facing the steel industry as appropriate, though taking rash trade remedy measures will not work out, Wang emphasized.