Anshan Iron and Steel Group may be Mainland China’s fourth-largest steel maker by output, but it has not had a welcoming reception in the company’s attempt to build plants in the U.S.
The state-run Chinese mill signed an agreement with US steel mill Steel Development Company to build five steel plants in the United States. However on July 2nd, a bipartisan group of 50 U.S. lawmakers called for an investigation to determine if the intentions of the Chinese investment venture in the U.S. steel sector could pose a national security breach.
The Congressional Steel Caucus stated in a letter to Treasury Secretary Timothy Geithner, that the group was “deeply concerned” about the business activity between Anshan Iron and Steel Group and Steel Development Co worth $175 million in Amory, Mississippi which could cost American’s jobs. The facility would be used to produce rebar, which is normally used in concrete and buildings as a reinforcing steel bar.
There has been vocal criticism from the U.S. steel producers who have questioned the imbalance in competition from China and the subsequent triumph of the U.S. Commerce Department’s anti-dumping duties that impacted around $1.1 billion of Chinese steel pipes annually. In April the decision marked the largest U.S. trade complaint filed on record against China in terms of value.
“[Anshan is] the product of massive Chinese government subsidies,” the lawmakers said in their letter. “We are deeply concerned that their direct investment in an American steel company threatens American jobs and our national security.”
“For example, Anshan could have access to new steel production technologies and information regarding American national security infrastructure projects,” they said.
Chinese government subsidies could allow Anshan “to distort the American market and force American steelworkers to compete against a blank check,” the lawmakers said.
Sino-U.S. trade relations have been somewhat tense, with various incidents and factors that are taking its toll – including the value of the Chinese currency and Google’s dispute with the Communist State regarding censorship. Even duties on U.S. chickens for anti-dumping were imposed by Beijing, even though China is the largest market for American chickens.
President Barack Obama also provided some advice to China to be open to economic reform, paying attention to other matters including removing non-tariff trade barriers as well as enforcing intellectual property protection at the recent G20 Summit in Canada.
“We do expect that as more and more market forces come to bear, that given the enormous surpluses that China has accumulated, that the RNB is going to go up, and it’s going to go up significantly,” President Obama said. “And so we are going to be paying attention over the next several months to make that determination,” said Obama.
The state-run Chinese mill signed an agreement with US steel mill Steel Development Company to build five steel plants in the United States. However on July 2nd, a bipartisan group of 50 U.S. lawmakers called for an investigation to determine if the intentions of the Chinese investment venture in the U.S. steel sector could pose a national security breach.
The Congressional Steel Caucus stated in a letter to Treasury Secretary Timothy Geithner, that the group was “deeply concerned” about the business activity between Anshan Iron and Steel Group and Steel Development Co worth $175 million in Amory, Mississippi which could cost American’s jobs. The facility would be used to produce rebar, which is normally used in concrete and buildings as a reinforcing steel bar.
There has been vocal criticism from the U.S. steel producers who have questioned the imbalance in competition from China and the subsequent triumph of the U.S. Commerce Department’s anti-dumping duties that impacted around $1.1 billion of Chinese steel pipes annually. In April the decision marked the largest U.S. trade complaint filed on record against China in terms of value.
“[Anshan is] the product of massive Chinese government subsidies,” the lawmakers said in their letter. “We are deeply concerned that their direct investment in an American steel company threatens American jobs and our national security.”
“For example, Anshan could have access to new steel production technologies and information regarding American national security infrastructure projects,” they said.
Chinese government subsidies could allow Anshan “to distort the American market and force American steelworkers to compete against a blank check,” the lawmakers said.
Sino-U.S. trade relations have been somewhat tense, with various incidents and factors that are taking its toll – including the value of the Chinese currency and Google’s dispute with the Communist State regarding censorship. Even duties on U.S. chickens for anti-dumping were imposed by Beijing, even though China is the largest market for American chickens.
President Barack Obama also provided some advice to China to be open to economic reform, paying attention to other matters including removing non-tariff trade barriers as well as enforcing intellectual property protection at the recent G20 Summit in Canada.
“We do expect that as more and more market forces come to bear, that given the enormous surpluses that China has accumulated, that the RNB is going to go up, and it’s going to go up significantly,” President Obama said. “And so we are going to be paying attention over the next several months to make that determination,” said Obama.
