Possibility of US Case Launch Could Make China React

It has been reported that China has confirmed to a hit back should the United States of America decide to pursue the investigation of a complaint made against China’s dumping of steel pipes in United States markets. This was reported from the China Daily newspaper, quoting an official last Friday. There were seven United States steel making companies that have been complaining to the trade bodies of the United States over the fact that China has been flooding their markets with steel pipes. This has caused the exports to rise from nine hundred thousand tonnes to around two point two million tonnes just last year. These were worth around two point seven billion dollars.

Chinese Reports on the Matter

Officials from China’s Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters also say that the steel industry association of china might also take up a lot of cudgels from the producers. This is if the United States government ends up launching a deeper probe into the case, according to the newspaper. This official was said to have the surname of Chen, but more details regarding his identity has not been unearthed. The has also mentioned that the trading enterprises and also the manufacturers could also be affected should the government of the United States of America end up imposing a lot of punitive duties due to some issues with the steel products of China. Yao Jian, the Commerce Ministry spokesman, also mentioned last Friday that the region of Beijing would be paying a lot of attention to this matter.

Reason for the Difficulties

It has also been said that these difficulties found in the steel industry of the United States of America is pretty much the result of the slowing down of demand that has been due to the current financial crisis. It has also been said that this should not be blamed on their importers, says Yao in one statement that has been released on the website of the Ministry. Searching for trade protection, according to Yao, is not a way to solve the real problems currently being faced by the American steel industry. He also adds that China is currently hoping that that the United States of America’s administration would try to resist the concept of protectionism and thereby avoid sending all the wrong messages to other nations in the world when it comes to their relationship with China. The complaints that have been filed by the steelmakers in the United States as well as the groups United Steelworkers union centers focus on stainless and also welded steel pipes are also known for distributing the OCTG or the oil country tubular goods. These have long been used for the oil and gas drilling projects in the nation.