China on Thursday expressed serious concern over India starting an anti-dumping investigation against Chinese steel products, while New Delhi has already imposed anti-dumping duty on them.
India launched an anti-dumping investigation in April into hot-rolled steel coils imported from China, making for the fourth such probe against China this year, state-run Xinhua news agency reported, citing a Chinese commerce ministry statement.
Terming excess steel capacity as a “global challenge”, China said countries should unite to face up to it, rather than abuse trade remedy measures. The commerce ministry statement said China and India should “properly handle trade frictions”.
It also hoped the Indian government would conduct a “fair and transparent investigation” in line with World Trade Organization (WTO) rules, and avoid adopting trade remedy measures against Chinese steel products.
Indian Commerce Minister Nirmala Sitharaman informed the lower house of parliament last month that the Director General Anti-Dumping and Allied Duties had initiated anti-dumping investigations on certain types of cold rolled steel and hot rolled flat steel products originating from China, Japan, Russia, South Korea, Brazil and Indonesia.
In December last, India imposed anti-dumping duty, ranging from five per cent to a whopping 57 per cent, on cold rolled steel from China, South Africa, Taiwan, Thailand and the US to curb its imports. Imports from China were mandated the highest levy — 57.39 percent.
The move came in wake of the 20 per cent import tax failing to check cheaper imports, resulting in losses to domestic producers such as the state-run Steel Authority of India.
Finance Minister Arun Jaitley has been maintaining that one factor contributing to the huge stressed assets of state-run banks has been the difficulties in the steel sector, which has been vehemently complaining of dumping by China.
In April, India imposed anti-dumping duty on telecom equipment exported by some Chinese companies, notably Huawei, ZTE, Alcatel’s Shanghai unit and ECI, in a bid to protect the domestic industry.