US warns China not to dump surplus steel

Washington, June 15 : The United States will fight back using its anti-dumping laws and other trade tools if a recent doubling of Chinese steel production leads to a glut of unfairly priced steel entering the U.S. market, U.S. trade officials said on Wednesday.

''This growth certainly creates concern that surplus Chinese steel production could cause disruptions on global markets and in the United States,'' Tim Stratford, assistant U.S. trade representative for China affairs, told members of the Congressional Steel Caucus.

While the United States and China have started a steel dialogue aimed at resolving problems before they become serious, ''we will continue to consider U.S. trade remedy measures as needed and as appropriate to ensure fair trade,'' Stratford told the panel.

That could include bringing a case against China at the World Trade Organization if the United States has evidence Beijing is subsidizing its steel sector in violation of international rules, Stratford said.

Commerce Deputy Assistant Secretary for Manufacturing Jamie Estrada told the panel many U.S. steel companies are showing record earnings because of strong worldwide demand that has pushed prices higher in recent years.

Nonetheless, the rapid buildup of China's steelmaking capacity and its recent shift from a major net importer to an exporter ''poses a significant challenge to the U.S. and global steel industries,'' Estrada said.

Chinese leaders have told the United States they intend to maintain a balance between steel imports and exports and have outlined a plan for reducing excess capacity by phasing out a number of older plants, Stratford said.

But there is no real evidence that Beijing is acting on that plan yet, Stratford said. The United States also would prefer China to let market forces, rather than government decisions, drive steel industry developments, he said.

The United States hopes to hold its second steel dialogue meeting with China in coming months, he said.

Reuters