The EU imposed a higher tariff on China's steel. (Photo : Getty Images)
The government of China protested over new sanctions and tariffs imposed by the European Union on steel importation. These duties were imposed to stop dumping in Europe.
Chinese ministry officials said the EU should "avoid abusing trade remedies and sending a wrong signal to the world. This move amplifies legal uncertainty and gravely affects normal international trade."
Tim Worstall, a fellow at the Adam Smith Institute in London and an expert on the metal industry, said that China's protest is well-founded.
He said, "The complaint is still valid in that imposing tariffs on imports is a remarkably stupid thing to do. Because cheaper steel makes all consumers in the EU better off."
The expert also added, "The aim and purpose of government are to make the people as well off as they possibly can be. And thus making people poorer by denying them cheap steel is not the point nor purpose of having a government nor indeed the EU itself."
However, another British steel expert said that the tariffs are well-founded and just and that the EU is showing its muscle.
"This shows the EU is starting to tackle the state-supported dumping of steel into the U.K., but it's still being outmuscled by Uncle Sam," said Dominic King, head of policy at U.K. Steel, an industry group.
The EU reported that China and Russia are dumping steel in Europe that is monopolizing the steel market and forcing local manufacturers to lose in the price war.
There is an average 100,000 to 120,000 tons of steel being dumped by both China and Russia.
"In the wake of the global steel overcapacity crisis, the commission is applying the trade defense instruments to re-establish a level playing field between the EU and foreign producers," the EU executive said.
