INTRODUCTION

China appeals certain issues of law and legal interpretations developed in the Panel Report, China – Countervailing and Anti-Dumping Duties on Grain Oriented Flat-Rolled Electrical Steel from the United States (the “Panel Report”). The Panel was established on 25 March 2011 to consider a complaint by the United States concerning China's measures imposing anti-dumping and countervailing duties on grain oriented flat-rolled electrical steel (“GOES”) from the United States, as set forth in the Ministry of Commerce of the People's Republic of China (“MOFCOM”) Announcement No. 21 of 10 April 2010 and its annexes (the “Final Determination”).

The anti-dumping and countervailing duty investigations at issue in this dispute were initiated as a result of an application filed by two Chinese steel producers, namely, Wuhan Iron and Steel (Group) Corporation (“WISCO”) and Baosteel Group Corporation (“Baosteel”). The applicants alleged that 27 US federal and state laws provided countervailable subsidies to producers of GOES in the United States. Further, the applicants alleged that dumped and subsidized imports of GOES from the United States, and dumped imports of GOES from Russia, caused, and threatened to cause, injury to the Chinese domestic industry. MOFCOM initiated the anti-dumping and countervailing duty investigations at issue on 1 June 2009 with respect to imports of GOES from the United States. Two exporters/producers of GOES in the United States—AK Steel Corporation (“AK Steel”) and ATI Allegheny Ludlum Corporation (“ATI”)—registered as respondents in both investigations. The period of anti-dumping and countervailing duty investigations was from 1 March 2008 to 28 February 2009, and the period of injury investigation was from 1 January 2006 to 31 March 2009.

On 10 April 2010, MOFCOM issued its Final Determination. MOFCOM calculated ad valorem subsidy rates of 11.7% for AK Steel, 12% for ATI, and 44.6% for “all others”, namely, US exporters/producers that did not register for the investigations and were unknown to MOFCOM. MOFCOM calculated a dumping margin of 7.8% for AK Steel, 19.9% for ATI, and 64.8% for “all others”. Moreover, MOFCOM conducted a cumulative assessment of injury and causation, and collectively took into account GOES imports from both Russia and the United States.