South Korea's anti-dumping case on hot-rolled coils from China achieves "soft landing" - Experts: Will provide more cooperation space for both countries

Recently, South Korea announced that it has reached an agreement with China on a price commitment plan in the final ruling of the anti-dumping case against Chinese hot-rolled coil.

A spokesperson for the Ministry of Commerce responded that replacing anti-dumping duties with a price commitment aligns with the interests of both industries and helps enhance the stability and predictability of China-Korea steel trade. China and Korea have close economic ties, deeply integrated industrial and supply chains, and mutually beneficial cooperation. The “soft landing” of this case reflects mutual respect, understanding, and care between China and Korea, sending positive signals for consolidating and deepening bilateral economic and trade cooperation.

An official from the China Iron and Steel Association told Securities Times that, in the short term, price commitments can help restore market prices in Korea and keep the possibility of continued exports to Korea. In the long term, they are beneficial for maintaining market channels, promoting export diversification, and improving the internationalization level of enterprises.

For some time, price commitments have played an increasingly important role in resolving international trade disputes. In January this year, in the China-EU automotive case, both sides agreed that it is necessary to provide general guidance on price commitments for Chinese exporters of pure electric vehicles to the EU, so that Chinese exporters can address related concerns in a more practical, targeted manner that complies with WTO rules.

“Replacing anti-subsidy duties with price commitments is an internationally accepted practice permitted under WTO rules. Exporters have the right to proactively request investigation authorities in importing countries to accept price commitments, promising to raise export prices to a level that can eliminate or threaten to harm the importing country’s industry; the investigation authorities should give full consideration,” said Shi Xiaoli, a professor at the School of International Law at China University of Political Science and Law, in an interview with Securities Times. She pointed out that using price commitments instead of anti-dumping and countervailing duties is a win-win for both exporting and importing countries and a pragmatic approach. Exporters can orderly enter the import markets under the protection of price commitment agreements, and importing countries will not cause new market shocks or impose additional burdens on consumers.

Shi Xiaoli further noted that resolving import impacts through moderate and pragmatic price commitments can provide more space for cooperation between the two countries. Especially now, with the United States’ unilateralism severely disrupting global trade order, countries need to strengthen cooperation to jointly address challenges triggered by the U.S.

“The Steel Association welcomes all efforts within the WTO framework to rationally and properly resolve trade frictions,” said an official from the China Iron and Steel Association. The Chinese steel industry will start from itself, maintain and promote the stable and orderly development of both domestic and international markets, and work with steel industries of other countries to achieve mutual benefits and win-win results. In past practices, the China Steel Association has actively cooperated with South Korea’s Ministry of Planning and Finance and Customs on price commitment supervision. Under the new circumstances, the two associations should continue to strengthen communication, share updates on market changes in both countries, and safeguard the hard-won results of price commitments.