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releases: https://www.portman.senate.gov/public/index.cfm/press-releases?ID=44CC2F31-850C-4524-BB27-623F68202BCE

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https://www.portman.senate.gov/public/index.cfm/press-releases?ID=44CC2F31-850C-4524-BB27-623F68202BCE Portman, Brown to European Union: Chinas Non-Market Economy Is A Threat To Steel Industry 2016-12-21 2016 2016-12 Republican House OH Rob Portman P000449 www.portman.senate.gov     legacy Senators Urged Parliament to Work with Congress to Devise Best Approach to China's State-Run Economy, Trade Violations U.S. Sens. Rob Portman (R-OH) and Sherrod Brown (D-OH) this week expressed their concerns over possible changes to the way imports from China are treated by the European Commission under the World Trade Organization (WTO) and how the changes could limit the United States’ ability to crack down on China’s continued trade violations. As the European Parliament considers how it will treat imports from non-market economies within WTO, Portman and Brown wrote to the President of the European Parliament Martin Schulz seeking the country’s cooperation in holding China to its trade obligations and continuing to take China’s non-market economy into consideration when applying trade remedy law. Portman and Brown urged Parliament to coordinate with the U.S. Congress on how to best approach China’s state run economy and its repeated trade violations.  In the letter, Portman and Brown specifically noted how China’s state-controlled steel industry has led to overcapacity in the American steel industry, which has idled factories in Ohio and across the U.S. “In the steel sector, for example, state support and ownership of China’s steel industry has led to massive excess steel capacity, which has caused significant disruptions in the global steel market,” said Portman and Brown. “We urge the Parliament to work with Congress to consider carefully and to devise the most effective approach both to the distorted prices of China’s non-market economy and the larger question of China’s continuing trade violations.” Portman and Brown also reached out to the European Commission in May to urge the EU against granting China market economy status, which would have destabilized the global steel sector and limited international efforts to encourage China’s compliance with trade law. Though China has promised to reduce steel production, it has yet to follow through on that promise. Full text of the letter is available below. The Honorable Martin Schulz President of the European Parliament European Parliament Rue Wiertz Paul-Henri Spaak 09B011 1047 Brussels Dear Mr. Schulz: We write to express our concerns regarding the European Commission’s proposal that would change how the EU treats imports from World Trade Organization (WTO) member non-market economies for the purpose of its trade remedy laws.  In light of China’s request this week to begin consultations with the U.S. and EU at the World Trade Organization, it is imperative that we coordinate our policies on non-market economy designations, particularly for China. We ask you to ensure the Parliament’s position on this proposal is established only after Congress and the Parliament have had the opportunity to collaborate on the most effective approach to state control and ownership in China’s economy and methods for how to treat imports from non-market economies in our trade remedy laws. China’s economy remains state-controlled, state-owned, and state-influenced.  This state control has contributed to many global market distortions.  In the steel sector, for example, state support and ownership of China’s steel industry has led to massive excess steel capacity, which has caused significant disruptions in the global steel market.  As a result of these disruptions, numerous U.S. facilities have idled or closed and thousands of American workers have lost their jobs.  The U.S. steel industry has managed to get temporary relief by filing successful antidumping and countervailing duty petitions, which have taken into account China’s non-market economy status.  We are concerned that the Commission’s proposal would remove leverage the U.S. and other countries have to encourage China to transition away from a state-controlled economy.  The Commission’s proposal would eliminate any distinction between non-market economy and market economy countries under the EU antidumping law.  As a result, it appears unlikely China would actually be treated as a non-market economy in EU antidumping investigations.  We believe these policy changes would hinder international efforts to improve China’s fulfillment of its trade obligations. China has not fully complied with its trade obligations since joining the WTO 15 years ago, and our manufacturers and their workers have paid the price.  We urge the Parliament to work with Congress to consider carefully and to devise the most effective approach both to the distorted prices of China’s non-market economy and the larger question of China’s continuing trade violations.  Only through U.S.-EU collaboration can we help our manufacturers get the level playing field they need and the long-term relief they deserve. Sincerely, 1 2026-03-30T12:14:52Z 2026-03-30T12:14:52Z
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