The U.S. Should Be Cautious in Filing the "Shuanghe" Case against China Steel

On April 8, the U.S. steel pipe enterprises and related associations formally applied to the U.S. Department of Commerce and the International Trade Commission for an anti-dumping and anti-subsidy merger investigation of oil well pipe products exported from China, involving more than 200 Chinese suppliers. Under US trade law, the US International Trade Commission will decide whether to file a case within 20 business days of receiving the application. Yao Jian, spokesman for the Ministry of Commerce of the People's Republic of China, stated on the 15th that the United States should proceed cautiously on the issue of China's oil well pipe product “double reverse”. What does the U.S. practice mean? How should China's related industries face? Yuan Gangming, a researcher at the Institute of Economics of the Chinese Academy of Social Sciences, accepted an interview with this reporter.

At present, the Chinese steel industry is facing the severe challenge of the global financial crisis. At this time, how do American companies issue “double reverse” investigations on China’s steel exports and how does it affect the Chinese steel industry? In this regard, Yuan Gangming analyzed: “The sales of Chinese steel products are currently very difficult. Commodity prices are falling sharply and exports have also been hampered. Many domestic steel mills have now suffered serious losses due to suspension of production or production cuts. Currently, the steel industry is affected. The two sides attacked: First, exports could not go out, and secondly, domestic (sales) are now experiencing difficulties. Now that the international steel industry has just turned around, this situation has occurred, and the loss or discontinued production of steel plants may be even more serious. Therefore, the impact of this incident on the Chinese steel industry is very large."

Earlier this year, the U.S. Senate passed the economic stimulus package. One of the issues related to the purchase of U.S. goods caused widespread controversy on a global scale. Many people of insight worry that with the gradual expansion of the financial crisis, trade protectionism will resume. look up. The United States Iron and Steel Workers Federation Gerhard recently publicly stated that the US oil pipe company has laid off 2,000 people, he blamed the reduction of the post part of the impact of imported steel pipe, that the global recession has exacerbated the adverse effects of China's import growth. Yuan Gangming, a researcher at the Institute of Economic Research of the Chinese Academy of Social Sciences, believes that the US’s approach at this time is a microcosm of trade protectionism: “The new US government has proposed not to adopt trade protectionism after taking office. At the G20 summit, countries In a joint statement, no protectionism will be adopted, and the big countries must first assume the primary responsibility of the developed countries because the developing countries are in a relatively weak position (noting the opposition to protectionism). Excessively, the United States’ own economy has experienced problems, so the United States has begun to apply anti-dumping and even protectionism against other countries. If other countries resort to retaliatory measures against the United States, or if everyone adopts trade protectionism, it is very serious. It is very wrong to do this."

In response to the US move, Chinese Ministry of Commerce spokesman Yao Jian said on the 15th that exports of Chinese steel products to the United States have reached US$3.2 billion, which is a relatively large scale. In the first quarter of this year, the export of Chinese steel products fell by about 55% year-on-year, and iron and steel enterprises encountered relatively great difficulties. In this context, it is not appropriate for the US industry to file an appeal. At the same time, the person in charge of the Chinese Ministry of Commerce also met with the United States Commercial Counselor in China. In the near future, China will also organize a delegation to the United States for further negotiations.

In the face of the rising trend of trade protectionism, it is necessary to respond to the “double reverse” investigation proposed by the US steel industry. What measures should Chinese relevant industries take? Yuan Gangming believes: "We must strongly protest this kind of non-compliance of the United States in the difficult times of helping each other and coping with the difficulties (convention). The developed countries should take responsibility. We have not violated the rules. Second, we must also make relative Responses, for example, do not pin their hope of expanding steel production on expanding exports. Since stimulating the expansion of exports requires increasing export tax rebates and various incentive measures, other countries will in turn resort to anti-dumping measures."