EU report signals continuation of tougher stance on Chinese subsidies

A report from the European Commission has accused the Chinese government of giving illegal subsidies to steel companies, arguing that the policy means that domestic purchasers can buy organic coated steel at below market prices and undercut their European competitors. The authors go on to recommend imposing retaliatory import duties of up to 50% on coated steel. However, experts have pointed out that the report could have implications for the whole steel industry, if trade lawyers can establish that such subsidies effectively extended to rolled steel as well, a vital constituent of coated steel. (…)