STEEL

Tariffs
  • China’s average tariff on steel and steel mill products is currently 7.5 percent.  This will be reduced to an average rate of 6.0 percent.  These reductions will be completed by January 1, 2004.
Trading Rights and Distribution
  • Prior to its accession, China restricted the number of companies that had the right to import and export goods as well as the types of goods that these companies could import.  Because steel products were also subject to designated trading, as identified in Annex 2B to the Protocol, the number of companies that could import and export these products was further restricted. After China’s accession, the number of enterprises in China permitted to import and export steel products will be increased over a three-year transition period.  At the end of that period, all enterprises in or outside of China will be able to import and export all steel products.
  • For enterprises and individuals that are not invested in China, the right to import and export will be granted in a non-discriminatory and non-discretionary way.  Any requirements will be for customs and fiscal purposes only.  
  • Prior to its accession, China did not generally permit foreign companies to distribute products through wholesale and retail systems in China or to provide related distribution services, such as repair and maintenance services.  These prohibitions will be phased out over three years for most products, including steel products.  (See sector report on Distribution Services)
Import Procedures
  • China has agreed to bring both its automatic and non-automatic import licensing systems into conformity with the WTO Agreement on Import Licensing, ensuring that these systems will not function as trade barriers and will comply with the principles of national treatment and nondiscrimination. 
  • China will no longer condition importation or investment approvals on whether competing domestic suppliers exist or on performance requirements of any kind, such as export performance, local content, technology transfer, offsets, foreign exchange balancing, or research and development.
Taxes
  • China has agreed to ensure that its laws, regulations, and other measures relating to internal taxes and charges levied on imports comply with WTO rules and are applied uniformly to both foreign and domestic enterprises.  This obligation applies not only to national taxes but to provincial and local taxes as well.
Subsidies
  • China has agreed to eliminate all subsidies on industrial goods that are prohibited under WTO rules, i.e., export and import substitution subsidies. (See separate report on Import Related Issues)
Antidumping
  • China has agreed that the United States (and other WTO members) may continue to apply its non-market economy methodology for measuring dumping in antidumping investigations of imports from China for the first 15 years following accession. 
  • China continues to have the opportunity to demonstrate that market conditions prevail in its economy as a whole or in a particular industry, but any such demonstration must be made to the satisfaction of the investigating authority.  (See separate report on Import Related Issues)
Transitional China-Specific Safeguard Mechanism
  • China's accession agreement includes a unique, China-specific safeguard mechanism allowing a WTO Member to restrain increasing imports from China that disrupt its market.  This mechanism will be available for 12 years after accession. (See separate report on Import Related Issues)

December 2001
Department of Commerce
International Trade Administration
Back to top