Trade trend between China and the United States

The result of serious research into US steelmaking should encourage Chinese companies to use the US legal system to resolve disputes.

This is the appraisal of one attorney from Beijing at a US law firm that helped successfully defend Chinese steel companies under investigation by the US Trade Commission.

“Chinese companies should make the most of US laws and regulations to protect their interests,” he said.

“The rule of law helps to make vulnerable people more protected. An excellent example of this is the investigation against Chinese steel companies.

Trade experts and lawyers also said Chinese firms could use the US legal system to protect themselves as trade friction raises the prospect of more legal problems from US competitors.

China was the source of only 2 percent of US steel imports in 2017, but this case covered almost all of that 2 percent. A decision to do so would threaten to exclude China from the US market.

Section 337 of the investigation is not new to China. In 2017, US companies filed 15 such complaints about Chinese products ranging from diapers and electronic devices, according to the China Ministry of Commerce. There have been at least nine such cases this year, according to the ministry.

The United States became the fourth largest steel producer in the world in 2017 with 81.6 million tonnes, or 4.8% of global production, according to the World Steel Association (WSA). That's up from 831.7 million tonnes in China, which is 49.2 percent of the world's total, according to WSA data.

According to the US Department of Commerce, the US has already imposed more than 160 different tariffs on foreign steel, and some tariffs on Chinese steel are in excess of 500 percent.

The economic confrontation is expected to continue, with the US saying it will impose tariffs on US $ 34 billion on Chinese goods, effective July 6, and China, responding by saying that tariffs on US goods are at the same value. will be valid from the same date.

But in the face of trade disputes with American competitors, a lawyer encouraged Chinese companies to resolve differences through legal means and deliberation.

“The fierce confrontation is not conducive to anything. “It would be very helpful to use the rules - whether they are in the domestic rules of the World Trade Organization or the United States,” he said.