The commission now will have 45 days to set a target date for completing its investigation. U. S. Steel is alleging that China and its largest producers have conspired to fix prices, stolen trade secrets and evaded trade duties by mislabeling products. 

“We strongly believe that Chinese steel producers have engaged in illegal unfair methods of competition, which have created a force with which no market economy can compete,” said U. S. Steel chief executive Mario Longhi in a statement applauding the decision.

“We eagerly look forward to commencing discovery and confronting those who have engaged in these illegal acts that have negatively impacted our company. We remain confident that the evidence will prove the Chinese steel producers engaged in collusion, theft and fraud and we will aggressively seek to stop those responsible for these illegal trade actions,” he said. 

Although Section 337 investigations usually involve allegations of patent or trademark infringement, they can pertain to unfair trade practices that could substantially injure or destroy a domestic injury. 

 

If U. S. Steel prevails in its case, the commission could issue what's known as an exclusion order. Such orders direct U.S. Customs and Border Protection to turn away shipments of products from offending producers or countries. 

 

In a statement, the United Steelworkers union said China must be held accountable for its continuing efforts to increase global overcapacity in steel and other products.

“The broad case may finally force Chinese companies to account for their policies and practices that have damaged U.S. steel producers and workers. Right now, more than 13,500 workers in the sector have received layoff notices. Chinese companies are the single largest contributor to the devastation that has occurred,” said Leo W. Gerard, the union’s international president. 

Xinhua, China’s official news agency, reported that the country’s Ministry of Commerce “resolutely opposes” the decision to move ahead with the investigation and is encouraging steelmakers to “legally defend their interests.”