U.S. Steel Ratchets Up Trade War with China, Files Complaint with the ITC

In what is being described as the boldest move against foreign steel interests since 1978, U.S. Steel is trying to get China from cheating and stealing its way into the American steel markets.

The petition, known as Section 337 and used to protect against intellectual property theft, listed some of China’s top producers, including Hebei Iron & Steel Group and Anshan Iron and Steel Group and Shandong Iron & Steel Group Co [SDONGG.UL].
“We have said that we will use every tool available to fight for fair trade,” said U.S. Steel Corp President and Chief Executive Officer Mario Longhi in a statement.

“With today’s filing, we continue the work we have pursued through countervailing and antidumping cases and pushing for increased enforcement of existing laws.”

It comes after U.S. officials last week warned that China should take steps to cut excess output or face possible trade action and Australia said it will impose import duties on certain types of Chinese steel to protect domestic steelmakers.
China’s Commerce Ministry called steel a “mature product” where “intellectual property rights disputes do not exist”, and said industry from both the United States and China should work together to address overcapacity caused by weak global demand.
“So-called accusations of intellectual property rights violations have no factual basis. We hope the U.S. International Trade Commission will reject these accusations,” the ministry said on Wednesday in a statement on its website.

China has been dumping subsidized steel on our shores for a long time. It’s basically a welfare state for China, with the government paying steel makers to employ thousands, enabling them to dump steel on our markets for a fraction of what American steel makers charge.