China says U.S. trade protectionism is shocking

A man stands in front of containers at Tianjin Port in Tianjin municipality in this March 2009 file photo.

BEIJING (Reuters) - The third U.S. investigation in 10 days which could lead to duties on Chinese steel imports is a shocking sign of trade protectionism, China's commerce ministry said on Monday.

The U.S. Department of Commerce on June 26 opened a probe into whether China has dumped or subsidised wire decking sold in the U.S. market, following the launch of similar investigations into wire strand and steel grating the previous week, the Chinese ministry said.

"The frequency of the cases and the strength of the targeting has shocked China," it said in a statement on its website. "Chinese industry is extremely dissatisfied and the Chinese government is gravely concerned."

China said it reserved the right to turn to the World Trade Organisation (WTO) to settle the disputes and called on the United States to exercise more restraint in applying trade remedy measures.

"These actions are sending the wrong signal about trade protectionism within the United States and to the international community," it said.

The strongly worded statement followed friction last week when the European Union and the United States said they were taking a complaint to the WTO over China's export curbs on some industrial raw materials used in steel, cars, microchips, planes and other products.

China rejected the U.S. and European charges that its restrictions on raw materials exports violate international trade rules, saying its policies were in keeping with WTO regulations.

China's massive industrial overcapacity, its low labour costs and efficient infrastructure mean Chinese goods are spilling out into world markets, threatening profit margins, jobs, and the very existence of some sectors in Europe and the United States.