American Mills Take China Issues to Government

October 6, 2011
Steel Business Briefing

Currency isn't the only issue the American steel industry has with China. The American Iron and Steel Institute is calling for China "to end its trade-distorting policies and practices" and live up to its WTO commitments. The comments were made yesterday in response to requests by the US government.

"Despite clear evidence that China has repeatedly violated its WTO obligations, it continues to practice WTO-illegal and market-distorting behavior, and its state-owned and supported steel industry continues to grow dramatically - to the point where it is now roughly seven times the size of our privately owned, market-based, highly efficient steel industry here in the United States," said Barry Solarz, AISI senior vp of trade and economic policy, in oral testimony before a government trade policy committee.

Click here to read Mr. Solarz’s oral testimony at the Trade Policy Staff Committee Hearing.

Click here to read AISI’s filed comments to USTR.

Other issues with China the AISI addressed include massive government subsidies, restrictive measures to secure access to raw materials, the protection of international property rights and the undervaluation of its currency.

The Senate may vote as early as today on legislation aimed at misaligned currencies. Several Chinese government agencies have responded, suggesting retaliation against the US and threatening a trade war, as Steel Business Briefing has reported.

"The threat of a trade war, when they have been waging one for over a decade, rings hollow indeed," said Nucor CEO Dan DiMicco in a statement to SBB "It is way past time that we and the world hold China accountable for their blatant disregard for every trade agreement they have ever entered into."