New Zealand Steel petitioned The Ministry of Business, Innovation and Employment (MBIE) for probing galvanized steel coils imported from China. The ministry has now confirmed that it will investigate the issue of cheap Chinese imports.

In its application, New Zealand Steel, one of the biggest steel companies in the country, claimed that it has witnessed a "sharp downward trend" in the price of specific steel imports. The ministry will investigate if Chinese import prices fall under the category of "dumping," referring to the practice of exporting goods at lower price than the prices charged in the home country.

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Both the US and EU charge tariffs on Chinese steel products. However, China has constantly denied giving any preferential treatment to its products. New Zealand Steel claimed that China extends subsidies ranging between 8 and 39 percent to its steel products.

The application also stated that the same steel products are also being reviewed for anti-dumping measures in Australia. The company has asked the imposition of countervailing duties, equivalent to the subsidies offered by China.

Chinese authorities were intimated about the issue in October this year, which responded claiming that the "remarks from media and law firms had been used as a basis for a wild guess that China was subsidising its steel industry." The authorities also said that the application has not provided any accurate and sufficient evidence for proving its allegations.

New Zealand is looking to solve the issue without damaging its ties with China. The Trade Minister Todd McClay said that the investigation will be carried out in close collaboration with China.

Tagschina, new zealand, The Ministry of Business, Innovation and Employment