New Zealand Prime Minister John Key has downplayed the possibility of a trade retribution after local steel manufacturers lodged a steel dumping complaint against Chinese imports, news website stuff.co.nz reported.

Speaking to press shortly after reaching Indonesia for a three-day tour, Key said that he cannot confirm whether concerned ministries have received any complaint against Chinese steel import, citing confidentiality.     

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"Even if there was a complaint, and even if it was investigated, whether a country like China would take retaliatory action against New Zealand, I don't believe that's the case that they would," Key told reporters in Indonesia. "There'll be lots and lots of ways of them looking to resolve issues if there were any, but it wouldn't be through the sort of things that we've seen reported."

The New Zealand Prime Minister added that he is in contact with China's leadership and has no knowledge about the issue.

However, reports in New Zealand's media suggest that Trade Minister Todd McClay has asked officials from the country's Ministry of Foreign Affairs to seek assurance from the Chinese embassy on the matter. Unconfirmed reports in the local media also indicate that China is already contemplating imposing a non-tariff barrier on New Zealand's agricultural export, including dairy, wool, and kiwifruit.

Prominent New Zealand companies like Zespri and Fonterra are reported to have been heavily taxed by Chinese authorities.

The issue of Chinese steel dumping has become a global issue, with many countries including the US lodging a complaint against China's steel dumping practices. This is a major issue in US presidential election, with both frontrunning candidates Hillary Clinton and Donald Trump promising to take action against China if elected to office.

Tagsnew zealand, china, Chinese Steel Imports, John Key