Two Chinese steel makers have won landmark anti-dumping cases in the US, the Financial Times said.
The US Department of Commerce found, after a year-long investigation, that Maanshan Steel and Weifang Steel Pipe Co had not dumped steel on the US market. This is believed to be the first time that Chinese companies have gone through the entire legal process of fighting a dumping case in the US and won. Maanshan’s sales of steel beams to the US are worth up to US$19m a year, and Weifang’s sales of steel pipes are worth US$2m a year. The US Department of Commerce ruled that the heavy involvement of the state in the Chinese economy prevents it from being classified as a market economy. Direct comparisons of prices of products are therefore not possible and prices in a surrogate country, India, were used instead. However, the steelmakers were able to demonstrate that the comparison was not valid because many of the inputs for the steel industry, such as coal, are more expensive in India.