India, China spar over steel dumping

By: |
New Delhi | Published: June 9, 2016 7:04 PM

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. (Source: IE Photo)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. (Source: IE Photo)

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.

Do you know What is Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India, Expenditure Budget, Customs Duty? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Exports revival? July exports at almost the same level as the last year’s, says Piyush Goyal
2Modi govt eases rules for private firms to sell petrol, diesel; check eligibility, net worth required, etc
3Poultry farmers in dire need of cash; seek $2.7 billion as sales dip amid coronavirus