China Says "Korea and China Agree on Price Undertaking in Hot-Rolled Steel Anti-Dumping Case... In Line with Both Countries' Interests"

Ministry of Commerce Issues Welcoming Statement
"An Exemplary Case of Resolving Differences Through Dialogue and Negotiation"

China's Ministry of Commerce has welcomed South Korea's decision to reach a price undertaking agreement with the Chinese side in the final stage of its anti-dumping investigation into Chinese hot-rolled steel sheets, calling it a "decision that serves the interests of both countries' industries."

In a Q&A-style statement posted on its website on the 24th, a spokesperson for China's Ministry of Commerce said, "South Korea announced that, in the final anti-dumping determination on Chinese hot-rolled steel sheets, it has agreed with the Chinese side on a price undertaking plan," adding, "Industries in both China and South Korea welcome this."

The spokesperson went on to stress, "Replacing anti-dumping duties with a price undertaking is in line with the interests of both countries' industries," and "It helps enhance the stability and predictability of steel trade between China and South Korea."

Hot-rolled steel sheet from a domestic company. The Asia Business Daily DB

Previously, the Trade Commission under the Ministry of Trade, Industry and Energy determined the day before that low-priced hot-rolled steel sheets from Japan and China had disrupted the domestic market and caused material injury, and decided to impose anti-dumping duties of up to 33.43%.

However, as three Japanese companies and six Chinese companies proposed a price undertaking under which they would raise their export prices for the next five years, the Trade Commission decided to accept this proposal and recommend that no duties be imposed on those companies. A price undertaking is a mechanism under which exporting companies are exempted from anti-dumping duties if they voluntarily increase their prices by a certain margin, and it is a measure permitted under World Trade Organization (WTO) rules. It is generally regarded as a 'soft landing' tool to mitigate trade shocks arising from the imposition of high tariffs.

China's Ministry of Commerce stated, "China and South Korea are closely connected economically, and their industrial and supply chains are deeply intertwined," emphasizing that "this soft landing is the result of China and South Korea respecting and understanding each other and taking each other's concerns into consideration."

It went on to say, "The fact that both sides properly resolved the issue within the framework of WTO rules has shown the world their stance of supporting multilateralism and safeguarding free and fair trade," adding that it is "another exemplary case of appropriately resolving differences through dialogue and negotiation."