Japanese Steel Exporters Angered By New Chinese Tariffs

by Mary Swire, Tax-News.com, Hong Kong

08 November 2002

China's decision to impose tariffs of up to 22% on five categories of Japanese steel imports has angered the latter's steel industry, whose exports to mainland China grew rapidly this year, increasing at an annual rate of more than 80% between April and August.

Along with many other countries, China imposed provisional tariffs on steel imports earlier this year, partly in an attempt to counter the effects of the protectionist measures put in place by the current US administration. However, these measures expire on November 19.

Speaking to the World Trade Organisation in May, representatives from the Chinese government explained that the levies on Japanese steel imports were necessary, as strong shipments from Tokyo were damaging the local steel industry.

Both the Japanese government and the steel industry have expressed outrage at China's decision to retain the majority of the provisional tariffs this week, with Japan Iron and Steel Federation chairman, Akira Chihaya condemning the move as 'deplorable'.

'It is regrettable that China is officially launching safeguard measures amid growing concerns around the world over protectionist moves in steel products trade,' he observed, adding that: 'The measures would be a disadvantage to those who need steel products in China, where the market continues expanding and the auto and electronics industries are growing.'

It is thought that Japanese government officials will be meeting with their Chinese counterparts next week, in an attempt to clarify the situation before the expiry of the provisional import tax measures.

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