Contributing Lawyers

Canada

Cyndee Todgham Cherniak

United States

Susan Kohn Ross

Australia

Andrew Hudson



China is Learning to Play the Anti-Dumping Retaliation Game

The World Trade Organization has reported that more anti-dumping and countervailing duty cases were filed last year against China than any other country.  China appears to be considering the ways it can respond.  The most recent development is that Chinese companies have filed complaints against exporters from the accusing countries - as if to say, "you are shutting us out of your market, you cannot sell into our home market".

The Chinese press reports indicate that Wuhan Iron and Steel Group Corp and China’s Baosteel Group Corp. filed a complaint and China's Ministry of Commerce (MOFCOM) has launched its first trade remedy investigation against steel products from the U.S. (antidumping and countervailing duty) (and Russia - antidumping probe only).  The probe targets grain-oriented flat-rolled electrical steel, which is used in power transformers and electric motors and generators, and will investigate claims that these products are being sold below market value and with the aid of federal and state subsidies. MOFCOM said that the investigation period for the anti-dumping and anti-subsidies claims was from March 1, 2008 to February 28, 2009. An industry impairment investigation of both the claims covered January 1, 2006 to March 31, 2009.

Wu Xinchun, vice secretary general of the China Iron & Steel Association, said the China Iron & Steel Association is planning to file other anti-dumping claims against imported hot-rolled coils and plates in the near future.

In addition, Chinese fasteners producers filed an antidumping case against the EU in retaliation of the EU final determination relating to fasteners. On December 1, 2008, Ministry of Commerce received a petition filed in proper form submitted by Chinese Fasteners Industry Association on behalf of Chinese domestic certain iron or steel fasteners industry to apply for anti-dumping investigation on imported certain iron or steel fasteners originating from the European Community. On March 25, 2009, MOFCOM initiated an antidumping investigation.

Go to the following links to review some of the Chinese press reports:

- http://business.globaltimes.cn/industries/2009-06/433989.html

- http://tradeinservices.mofcom.gov.cn/en/local/2009-03-25/69953.shtml

- http://www.chinasourcingnews.com/2009/01/08/43912-china-mofcom-starts-enquiry-in-eu-iron-and-steel-fasteners/

- http://www.chinacsr.com/en/2009/01/06/4057-ministry-of-commerce-initiates-anti-dumping-investigation-on-the-eu/

- http://www.sourcejuice.com/1162585/2009/04/15/Steel-fasteners-release-anti-dumping-questionnaire-inform/

This sort of response to an antidumping case is not new.  However, the reaction does send a message that trade is a two way street.

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