China to Investigate U.S. Electric Steel Imports

飞雪寒冰

China's Ministry of Commerce said on August 19 that it will expand its investigation of U.S. produced electric steel at the request of domestic steelmakers and study U.S. government actions that might be unfairly protecting the U.S. steel industry.

In an online statement, the commerce ministry said it was approached by Wuhan Iron & Steel and Baosteel on July 20 and asked to investigate U.S. subsidies of electric steel products.

The ministry said following the steelmakers' petition, it decided to investigate what it said was the U.S. government's low-priced or subsidized electricity, coal and natural gas supply to the steel industry.

It will also study the Pennsylvania state government's economic stimulus plan of 2003 and the Pennsylvania Steel Products Procurement Act.

The ministry has launched its investigation on June 1 and already contacted U.S. officials regarding the issue.

Trade friction has intensified in recent months between China and several of its trading partners, including the United States and the European Union, over fears that the economic slowdown could spur protectionism.