China has expressed concerns over the European Union's protectionist stance against its steel products. The recent overcapacity in the steel sector has caused a rift between China and the European Union (EU). China is the biggest producer of construction material in the world.

The EU recently decided to impose temporary anti-dumping actions against seamless steel pipes from China. The higher tariffs on Chinese steel may cause serious damage to the international trade. These tariffs may also threaten China's steel manufacturing industry.

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China commerce ministry stated on its website that "The Chinese side has expressed great concerns and worries about the EU's trade protectionist tendency over steel." It further said that the country is looking to boost ties with the EU through communication.

The newly imposed tariff against Chinese seamless steel pipes will be effective for six months. China has expressed hope that EU will adhere to relevant rulings made by the World Trade Organization. The EU used "analogue country" method to impose the duty. The Chinese ministry claimed that this method is unfair and unreasonable.

The "analogue country" method uses the price data collected from a third country for the purpose of calculating the value of products from a non-market economy country. The new action against Chinese steel has been opposed by many countries such as the Netherlands and Sweden.

China furthered its case against the imposition of high duties on its steel products by stating that the European steel industry is suffering due to slacking economic growth. It claims that Chinese imports are not the cause of the European industry's problems.

TagsEuropean Union, china, steel