China Questions Legitimacy of EU Duties on Hot Rolled Steel

“China strongly questions the legitimacy and legality of the European Commission’s ruling,” added Wang.

He argued that state-owned Chinese banks are independent market entities and that the EC continues to mistake bank loans as preferential lending. “It even disregarded basic financial facts by mistaking some bank loans directly as bestowal, inflating the subsidy range and seriously infringing the rights of Chinese companies,” he said.

Wang contended that not only does China not subsidize steel exports, it has taken steps to reduce them. “It is biased and unfair for Europe to blame China for its own industrial issues,” he said. “Unjustified accusations and reckless trade rescue measures will not help to solve the problem.”

EU Trade Commissioner Cecilia Malmstroem said the Commission is trying to “level the playing field” and protect European steelmakers from the flood of exports from China. “We are continuing to act, when necessary, against unfair trading conditions in the steel sector, and against foreign dumping,” Malmstroem said in a statement.