In response to last week’s announcement by the US International Trade Commission (US ITC) that it has decided to initiate an investigation under Section 337 of the Tariff Act of 1930 against carbon steel and alloy steel imports from China, China's Ministry of Commerce (MOC) has stated that the US has been continuously taking trade remedy measures against China, which it qualified as “extremely imprudent”, in particular the initiation of the unprecedented Section 337 investigation against China.
The MOC urged that the US should adhere closely to World Trade Organization (WTO) rules and desist from protectionism and should adopt a common approach with China to cope with the issue of excess capacity amid sluggish economic growth. The MOC stated that the Chinese and US steel industries should strengthen dialogue and communication rather than taking unreasonable measures, while the MOC said it would also encourage steel enterprises in China to defend themselves according to the WTO rules.