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Summary: "China has criticized U.S. anti-dumping penalties imposed on Chinese steel amid mounting complaint Beijing is exporting at improperly low prices to clear a backlog at home." Beijing faces mounting criticism from the United States and Europe because of their low-cost steel which has made Western governments to complain on how is hurting their producers and threating thousands of jobs. The Chinese government is trying to reduce their productions on steel, coal, cement, aluminum and solar panel manufacturing where demand exceeds. Making producers to cut prices leading some of them to bankruptcy.
The Commerce Department ruling levies import taxes of 522 percent, 266 percent anti-dumping duty and 256 percent anti-subsidy duty on imports of Chinese cold-rolled steel which is used in automobiles and construction.
The United States Steel Corp. along with other producers, they have filed a complaint accusing the biggest Chinese steel producers of "conspiring prices, stealing trade secrets and skirting duties on imports in the U.S. with false trade".
Reaction: China is one of the most competitive and faster growing market. The issue is if China continues lowering their steel prices compare to their competitors this can cause economically problems in other countries, because domestic producers won't be able to sell their products pushing them to lower their prices which later on can led producers to close causing thousands of employees to be lay off. The U.S. government has imposed massive tariffs on Chinese steelmakers and I have no doubt if China does not change other countries will do the same as U.S. It is important to have a balance in trade because this can also affect future negotiations and sometimes it can led to political issues.
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